Citigroup plans contingent coupon autocallables tied to oil, gold ETFs

By Angela McDaniels

Tacoma, Wash., May 9 – Citigroup Global Markets Holdings Inc. plans to price autocallable contingent coupon equity-linked securities due May 31, 2024 linked to the lesser performing of the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund and the VanEck Vectors Gold Miners exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be guaranteed by Citigroup Inc.

Each quarter, the notes will pay a contingent coupon if the lesser-performing ETF closes at or above its barrier value, 60% of its initial level, on the valuation date for that quarter. The contingent coupon rate is expected to be 9% to 10% per year and will be set at pricing.

Beginning in May 2020, the notes will be automatically called at par if the lesser-performing ETF closes at or above its initial level on any quarterly potential redemption date.

If the final level of the lesser-performing ETF is greater than or equal to its barrier value, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the lesser-performing ETF declines from its initial level.

Citigroup Global Markets Inc. is the underwriter.

The notes will price May 28.

The Cusip number is 17326YC46.

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