Citigroup plans contingent coupon autocallables linked to two stocks

By Devika Patel

Knoxville, Tenn., Jan. 10 – Citigroup Global Markets Holdings Inc. plans to price autocallable contingent coupon equity-linked securities due Jan. 30, 2019 linked to the worst performing of the common stocks of Bristol-Myers Squibb Co. and Merck & Co., Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be guaranteed by Citigroup Inc.

Each quarter, the notes will pay a contingent coupon at an annualized rate of between 10% and 11% if the worst-performing stock closes at or above its coupon barrier price, 77.5% of its initial share price, on the valuation date for that quarter. The exact coupon will be set at pricing.

The notes will be automatically called at par plus the contingent coupon if the worst-performing stock closes at or above its initial share price on any quarterly valuation date beginning in April 2018 and ending in October 2018.

If the final share price of the worst-performing stock is greater than or equal to its final barrier price, 77.5% of its initial share price, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will receive a number of shares of the worst performing stock equal to the principal divided by the initial share price or, at the company’s option, the cash equivalent.

Citigroup Global Markets Inc. is the agent.

The notes (Cusip: 17324XLR9) will price Jan. 25 and settle three business days after pricing.

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