Citigroup to price Pacers linked to homebuilder, natural gas funds

By Angela McDaniels

Tacoma, Wash., Sept. 9 - Citigroup Funding Inc. plans to price 0% Premium Mandatorily Callable Equity-Linked Securities due September 2012 linked to the worst performing of the SPDR S&P Homebuilders exchange-traded fund and the United States Natural Gas Fund, LP, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be called at par plus a premium of 17% 22% per year if the worst-performing fund closes at or above its initial price on any of three call dates, which will fall in March 2012, June 2012 and September 2012. The exact premium and call dates will be set at pricing. The last call date is also the final valuation date.

If the notes are not called, the payout at maturity will be par if the closing share price of each fund is greater than 60% of its initial share price throughout the life of the notes. Otherwise, the payout will be par plus the return of the worst-performing fund. This return will be negative because if the return were positive or flat on the final valuation date, the notes would have been called.

The notes (Cusip: 1730T0NT2) are expected to price and settle in September.

Citigroup Global Markets Inc. is the underwriter.

© 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.