Citigroup plans issue of Elks exchangeable for Intel

By Angela McDaniels

Seattle, April 24 - Citigroup Funding Inc. plans to price an issue of six-month Elks (equity-linked securities) linked to the common stock of Intel Corp., according to an FWP filing with the Securities and Exchange Commission.

The Elks will pay a coupon of 8% to 9%, with the exact coupon to be determined at pricing.

At maturity, investors will receive par in cash unless Intel stock trades below a trigger price during the life of the notes. If the trigger is hit, the payout will be a number of Intel shares equal to 10 divided by the initial share price.

The trigger price is expected to be about 85% of the initial share price.

Citigroup Global Markets Inc. will be calculation agent for the offering.

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