Citigroup plans ELKS linked to General Electric

By Jennifer Chiou

New York, Aug. 24 - Citigroup Funding Inc. plans to price six-month Equity-LinKed Securities (ELKS) linked to General Electric Co. stock, according to an FWP filing with the Securities and Exchange Commission.

The securities will pay interest of between 8% and 9% per year, with the exact coupon determined at pricing. Pricing is expected in September.

If the final price of General Electric stock is at least 85% of its initial price, the payout will be par of $10.00 in cash. The exact downside threshold will be determined at pricing.

If the stock price drops by more than 15%, investors will receive a number of General Electric shares equal to par divided by the initial stock price.

Citigroup Global Markets Inc. is the underwriter.

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