By Jennifer Chiou
New York, Aug. 27 - Citigroup Funding Inc. priced $4.39 million of fixed-coupon mandatorily callable notes due Aug. 30, 2013 linked to the iShares MSCI Brazil index fund, according to a 424B2 filing with the Securities and Exchange Commission.
If the exchange-traded fund's shares close at or above the initial share price on any semiannual valuation date, the notes will be called and investors will receive par of $10 plus a fixed semiannual coupon payment. If the shares close below the initial share price, the notes will remain outstanding and investors will receive the fixed semiannual coupon payment.
The fixed semiannual coupon payment is $0.40 per note, or 8% per year, and the valuation dates are set for Feb. 25, 2011, Aug. 25, 2011, Feb. 27, 2012, Aug. 27, 2012 and Feb. 25, 2013.
If the notes are not called and the final share price is at least 60% of the initial share price, the payout at maturity will be par. If the final share price is less than 60% of the initial share price, investors will receive a number of fund shares equal to $10 divided by the initial share price or, at each holder's option, the value of those shares in cash.
In each case, the payout at maturity will include the last coupon payment.
Citigroup Global Markets Inc. is the underwriter.
| Issuer: | Citigroup Funding Inc.
|
| Issue: | Fixed-coupon mandatorily callable notes
|
| Underlying fund: | iShares MSCI Brazil index fund
|
| Amount: | $4.39 million
|
| Maturity: | Aug. 30, 2013
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| Coupon: | If the ETF shares close at or above initial price on valuation date, $0.40 per note and notes will be called at par; if fund shares close below initial price on valuation date, $0.40 per note and notes remain outstanding; payable semiannually
|
| Price: | Par of $10
|
| Payout at maturity: | If final share price is at least 60% of the initial price, par; if final share price is less than 60% of the initial price, a number of fund shares equal to $10 divided by the initial share price or, at each holder's option, the value of those shares in cash
|
| Initial price: | $67.08
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| Downside threshold price: | $40.25, 60% of initial | price
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| Pricing date: | Aug. 25
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| Settlement date: | Aug. 30
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| Underwriter: | Citigroup Global Markets Inc.
|
| Fees: | 2%
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| Cusip: | 17316G701
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