Citigroup plans notes on Morningstar Wide Moat/S&P 500 Total Return

By Jennifer Chiou

New York, Oct. 18 - Citigroup Funding Inc. plans to price 0% notes due November 2013 linked to a long short basket containing the Morningstar Wide Moat Focus Total Return Index and the S&P 500 Total Return Index, according to a 424B2 filing with the Securities and Exchange Commission.

The Morningstar index is comprised of the 20 eligible companies in the Morningstar Wide Moat universe with the highest ratios of fair value price to stock price. The S&P 500 Total Return reflects changes in both movements in stock prices and the reinvestment of the dividend income from its underlying stocks.

At pricing, the basket will hold a 150% long position in the Morningstar Wide Moat Focus and a 50% short position in the S&P 500 Total Return.

If the notes are not called early, the payout at maturity will be par of $10 plus the basket return percentage.

The notes will be redeemed early if the basket closes at or less than 50% of the initial value. If the notes are called, holders will receive par plus the average of the two closing basket values immediately prior to the trigger date for the redemption.

The notes (Cusip: 17316G735) will price and settle in November.

Citigroup Global Markets Inc. is the agent.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.