Published on 4/29/2015 in the Prospect News Structured Products Daily.
New Issue: Citigroup prices $1.27 million contingent coupon autocallables linked to three stocks
By Angela McDaniels
Tacoma, Wash., April 29 – Citigroup Inc. priced $1.27 million of autocallable contingent coupon equity-linked securities due April 27, 2017 linked to the worst performing of the common stocks of Chesapeake Energy Corp., Golar LNG Ltd. and Cheniere Energy, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at an annualized rate of 31% if the worst-performing stock closes at or above its barrier price, 60% of its initial price, on the valuation date for that month.
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 monthly valuation date.
If the final share price of the worst-performing stock is greater than or equal to its barrier price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will receive a number of shares of the worst-performing stock equal to $1,000 divided by the initial share price of that stock.
Citigroup Global Markets Inc. is the underwriter.
| Issuer: | Citigroup Inc.
|
| Issue: | Autocallable contingent coupon equity-linked securities
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| Underlying stocks: | Chesapeake Energy Corp., Golar LNG Ltd. and Cheniere Energy, Inc.
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| Amount: | $1,268,000
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| Maturity: | April 27, 2017
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| Coupon: | 31% per year, payable monthly if worst-performing stock closes at or above barrier price on valuation date for that month
|
| Price: | Par
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| Payout at maturity: | If final share price of worst-performing stock is greater than or equal to barrier price, par plus contingent coupon; otherwise, number of shares of worst-performing stock equal to its equity ratio
|
| Call: | Notes will be automatically called at par plus contingent coupon if worst-performing stock closes at or above initial share price on any monthly valuation date
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| Initial share prices: | $14.54 for Chesapeake, $35.64 for Golar LNG and $78.64 for Cheniere; stock’s closing share price on strike date
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| Barrier prices: | $8.72 for Chesapeake, $21.38 for Golar LNG and $47.18 for Cheniere; 60 of initial share prices
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| Equity ratios: | 68.77579 for Chesapeake, 28.05836 for Golar LNG and 12.71617 for Cheniere; equal to $1,000 divided by stock’s initial share price
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| Strike date: | April 23
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| Pricing date: | April 27
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| Settlement date: | April 30
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| Underwriter: | Citigroup Global Markets Inc.
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| Fees: | 4.5%
|
| Cusip: | 17298CAG3
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