Citigroup to price ELKS linked to General Motors

By E. Janene Geiss

Philadelphia, Oct. 19 - Citigroup Funding Inc. plans to price Equity LinKed Securities (ELKS) due 2008 linked to the common stock of General Motors Corp., according to an FWP filing with the Securities and Exchange Commission.

The notes are expected to carry a coupon of about 10%. The exact coupon will be determined at pricing.

The payout at maturity will be par of $10.00 in cash unless General Motors shares drop below a threshold price that will be determined at pricing and is expected to be 55% to 60% of the initial value. If the stock drops below the threshold during the life of the ELKS, the payout will be a number of General Motors shares equal to $10.00 divided by the initial price or, at the holder's option, the equivalent cash value.

The notes will price in October.

Citigroup Global Markets Inc. will be the agent.

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