Citigroup to price autocallable equity-linked securities tied to Tesla

By Toni Weeks

San Luis Obispo, Calif., Aug. 22 – Citigroup Inc. plans to price autocallable equity-linked securities due Sept. 3, 2015 tied to the common stock of Tesla Motors, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The notes will carry a coupon of at least 3% per quarter. Interest will be payable quarterly.

The notes will be automatically redeemed at par plus interest if Tesla shares close at or above the initial price on Dec. 1, March 2, 2015 or May 29, 2015.

If the notes are not called and the final price is at least 75% of the initial price, the payout at maturity will be par. Otherwise, the payout will be a number of Tesla shares equal to $10 divided by the initial price or, at the issuer’s option, an equivalent amount in cash.

The notes (Cusip: 17322H214) are expected to price Aug. 29 and settle three business days later.

Citigroup Global Markets Inc. is the agent.

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