By Jennifer Chiou
New York, June 28 - Citigroup Funding Inc. has thus far sold $75 million of 0% C-Tracks exchange-traded notes due Nov. 12, 2020 linked to the Citi Volatility Index Total Return, according to a 424B2 filing with the Securities and Exchange Commission.
The figure outstanding includes the $20 million sold at inception as well as $24,437,800 principal amount held by Citigroup Global Markets Inc.
The company has registered to sell up to $200 million of the notes, up from the original $100 million cap. It will sell the additional notes from time to time at varying prices.
The payout at maturity or upon redemption will be an amount equal to the closing indicative value of the C-Tracks.
The closing indicative value is initially $100. On each subsequent day, it will be the closing indicative value on the previous day plus the index return for that day minus the investor fee.
The investor fee is initially zero. On each subsequent day, it will be an annualized amount equal to 1.15% of the closing indicative value on the previous day.
The notes are putable at any time, subject to a minimum of 50,000 C-Tracks and a 0.05% redemption charge. The notes are callable beginning on Nov. 12, 2012.
The index is a measure of directional exposure to the implied volatility of large-cap U.S. stocks.
Citigroup Global Markets Inc. is the underwriter.
| Issuer: | Citigroup Funding Inc.
|
| Issue: | C-Tracks exchange-traded notes
|
| Underlying index: | Citi Volatility Index Total Return
|
| Amount: | $75 million (up from original $20 million)
|
| Maturity: | Nov. 12, 2020
|
| Coupon: | 0%
|
| Price: | Par of $100
|
| Payout at maturity: | Cash amount equal to final closing indicative value
|
| Call option: | Beginning Nov. 12, 2012
|
| Put option: | At any time, subject to minimum of 50,000 C-Tracks and 0.05% redemption charge
|
| Inception date: | Nov. 12, 2010
|
| Underwriter: | Citigroup Global Markets Inc.
|
| Fees: | None
|
| Cusip: | 17316G727
|
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