By Sarah Lizee
Olympia, Wash., Oct. 17 – Citigroup Global Markets Holdings Inc. priced $5.35 million of callable fixed-to-floating range accrual securities due Oct. 17, 2028 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Citigroup Inc.
Interest will be fixed at 9% for the first year. After that, it will accrue at 50 times the spread of the 30-year Constant Maturity Swap rate minus the two-year Constant Maturity Swap rate for each day that the 30-year CMS rate is higher than the two-year CMS rate and the index closes at or above its 50% barrier level, subject to a maximum interest rate of 11%. Interest is payable quarterly and cannot be less than zero.
The notes are redeemable at par on any coupon payment date after one year.
The payout at maturity will be par unless the index finishes below its 50% barrier level, in which case investors will be fully exposed to the decline.
Citigroup Global Markets Inc. is the agent.
| Issuer: | Citigroup Global Markets Holdings Inc.
|
| Guarantor: | Citigroup Inc.
|
| Issue: | Callable fixed-to-floating range accrual securities
|
| Underlying index: | S&P 500
|
| Amount: | $5,345,000
|
| Maturity: | Oct. 17, 2028
|
| Coupon: | 9% for the first year; after that, 50 times the spread of the 30-year CMS rate minus the two-year CMS rate for each day that the 30-year CMS rate is higher than the two-year CMS rate and the index closes at or above its 50% barrier level, subject to a cap of 11% and floor of 0%; payable quarterly
|
| Price: | Par
|
| Call option: | At par quarterly beginning Oct. 17, 2019
|
| Payout at maturity: | Par unless index falls by more than 50%, in which case 1% loss per 1% decline
|
| Initial level: | 2,785.68
|
| Barrier level: | 1,392.840, 50% of initial level
|
| Pricing date: | Oct. 15
|
| Settlement date: | Oct. 17
|
| Underwriter: | Citigroup Global Markets Inc.
|
| Fees: | 2.25%
|
| Cusip: | 17326YBU9
|
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