Citigroup to price market-linked notes tied to price of gold

By E. Janene Geiss

Philadelphia, May 27 - Citigroup Funding Inc. plans to price 0% market-linked notes due June 27, 2018 linked to the price of gold, according to an FWP filing with the Securities and Exchange Commission.

If the price of gold is greater than the threshold price on any day during the life of the notes, the payout at maturity will be par plus 28%. The upside threshold price is expected to be 200% to 225% of the initial gold price and will be set at pricing.

If the price of gold does not increase beyond the threshold price, the payout will be par plus the greater of the commodity return and 7%.

The notes (Cusip: 1730T0MQ9) are expected to price and settle in June.

Citigroup Global Markets Inc. is the underwriter.

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