By Angela McDaniels
Tacoma, Wash., Oct. 18 - Citigroup Inc. priced $15 million of callable leveraged CMS spread notes due Oct. 22, 2033 linked to the 30-year Constant Maturity Swap Rate and the two-year CMS rate, according to a 424B2 filing with the Securities and Exchange Commission.
The interest rate is 10% for the first year. After that, it will be four times the modified spread, subject to a maximum interest rate of 10% per year and a minimum rate of zero. The modified spread is the 30-year CMS rate minus the two-year CMS rate minus 25 basis points. Interest is payable quarterly.
The payout at maturity will be par.
Beginning Oct. 22, 2015, the notes will be callable at par on any interest payment date.
Citigroup Global Markets Inc. is the underwriter.
| Issuer: | Citigroup Inc.
|
| Issue: | Callable leveraged CMS spread notes
|
| Underlying rates: 30-year Constant Maturity Swap and two-year CMS rate
|
| Amount: | $15 million
|
| Maturity: | Oct. 22, 2033
|
| Coupon: | 10% for first year; after that, (a) four times (b) 30-year CMS rate minus two-year CMS rate minus 25 bps, subject to 10% cap and 0% floor; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call option: | At par on any interest payment date from Oct. 22, 2014 onward
|
| Pricing date: | Oct. 17
|
| Settlement date: | Oct. 22
|
| Underwriter: | Citigroup Global Markets Inc.
|
| Fees: | 3.5%
|
| Cusip: | 1730T0A58
|
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