Citigroup to price 20-year callable leveraged CMS spread notes

By Jennifer Chiou

New York, May 14 - Citigroup Inc. plans to price callable leveraged CMS spread notes due May 30, 2033 linked to the 30-year Constant Maturity Swap Rate and the five-year CMS rate, according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be at least 10.5% for the first year. After that, it will be four times the spread of the 30-year CMS rate over the five-year CMS rate, minus 50 bps, up to a maximum interest rate of 10.5% per year. Interest is payable quarterly and cannot be less than zero.

The payout at maturity will be par.

The notes are callable at par plus accrued interest on any interest payment date after three years.

The notes (Cusip: 1730T0TK5) will settle on May 30.

Citigroup Global Markets Inc. is the underwriter.

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