Citigroup to sell Pacers linked to eBay

By Jennifer Chiou

New York, April 23 - Citigroup Funding Inc. plans to price 11/2-year Premium Mandatory Callable Equity-linked Securities (Pacers) linked to eBay Inc. stock, according to an FWP document filed with the Securities and Exchange Commission.

The securities will be priced at par of $10.00.

The securities will be subject to a mandatory premium call in November 2007, May 2008 or November 2008 if eBay stock trades at greater than or equal to the initial share price. The specific call dates and prices will be determined on the pricing date.

If the securities are not called before maturity, investors will receive a number of eBay shares equal to par of $10.00 divided by the initial share price if the company's stock closes at less than or equal to 70% of the initial share price during the life of the securities. Otherwise, investors will receive par in cash.

The notes will price in May.

Citigroup said it will apply to list the Pacers on the American Stock Exchange under the symbol "PAB."

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