Citigroup changes dates, cap of variable-coupon notes linked to stocks

By Angela McDaniels

Tacoma, Wash., Jan. 31 - Citigroup Funding Inc. changed the dates and the return cap of its variable-coupon notes linked to a basket of 10 common stocks, according a 424B2 filing with the Securities and Exchange Commission.

The maturity date is Feb. 28, 2016, the pricing date is Feb. 23 and the settlement date is Feb. 28. Prior to the changes, the maturity date was Jan. 30, 2016, and the notes were expected to price and settle in January.

The basket includes equal weights of Altria Group, Inc., Amazon.com, Inc., Amgen Inc., Archer-Daniels-Midland Co., AT&T Inc., Barrick Gold Corp., General Motors Co., Halliburton Co., Intel Corp. and Mattel, Inc.

The notes will pay a coupon each year equal to the greater of (a) the average of the stock performances on the applicable coupon observation date and (b) zero.

If a stock's return is greater than or equal to zero, its performance will be equal to the return cap, which is expected to be 6% to 8% and will be set at pricing. Otherwise, its performance will be the greater of the stock return and negative 30%. The return cap was originally expected to be 8% to 10%.

The payout at maturity will be par plus the final coupon payment, if any.

Citigroup Global Markets Inc. is the agent.

The Cusip number is 1730T0VT3.

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