Citigroup plans to price three-year Pacers linked to S&P 500 index

By Toni Weeks

San Diego, July 19 - Citigroup Funding Inc. plans to price 0% Premium Mandatory Callable Equity-linked Securities due Aug. 8, 2014 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

If the index closes at or above the initial level on the annual call date or on the final valuation date, the notes will be called at par plus an annualized call premium of 8.5% to 9.5% that will be set at pricing.

If the notes are not called, the payout at maturity will be par if the final index level is at least 80% of the initial level. Investors will be fully exposed to losses if the index drops by more than 20%.

The notes (Cusip: 1730T0MZ9) are expected to price Aug. 5 and settle August 10.

Citigroup Global Markets Inc. will be the agent.

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