Citigroup to price step down trigger autocallables linked to oil ETF

By Angela McDaniels

Tacoma, Wash., March 6 – Citigroup Global Markets Holdings Inc. plans to price 0% step down trigger autocallable notes due March 20, 2020 linked to the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

The notes are guaranteed by Citigroup Inc.

The notes will be automatically called at par of $10 plus a call premium – expected to be 8.15% to 9.15% per year – if the ETF closes at or above its call threshold level on any annual observation date. The call threshold level will be equal to the initial share price for the first two observation dates, March 19, 2018 and March 18, 2019, and 65% of the initial share price on the final observation date, March 17, 2020.

If the notes are not called, the final share price will therefore necessarily be less than the downside threshold, and investors will be exposed to the ETF’s decline from its initial share price.

Citigroup Global Markets Inc. and UBS Financial Services Inc. are the underwriters.

The notes will price March 17.

The Cusip number is 17325E739.

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