By Toni Weeks
San Luis Obispo, Calif., May 8 – Citigroup Inc. priced $7.43 million of autocallable contingent coupon equity-linked securities due May 12, 2016 linked to Valero Energy Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon of 10% per year if Valero stock closes at or above the coupon barrier price, 75% of the initial price, on the valuation date for that quarter.
The notes will be called at par plus the contingent coupon if Valero shares close at or above the initial share price on any quarterly valuation date other than the final date.
If the notes are not called, the payout at maturity will be par plus the contingent coupon unless the stock finishes below the 75% barrier level, in which case investors will receive a number of Valero shares equal to $1,000 divided by the initial share price or, at the issuer’s option, the cash value of those shares.
Citigroup Global Markets Inc. is the underwriter.
| Issuer: | Citigroup Inc.
|
| Issue: | Autocallable contingent coupon equity-linked securities
|
| Underlying stock: | Valero Energy Corp. (Symbol: VLO)
|
| Amount: | $7,426,000
|
| Maturity: | May 12, 2016
|
| Coupon: | 10% per year, payable quarterly if Valero shares close at or above barrier price on quarterly valuation date
|
| Price: | Par
|
| Payout at maturity: | If stock finishes at or above barrier price, par plus contingent coupon; otherwise, 17.30403 Valero shares or cash equivalent
|
| Call: | At par plus contingent coupon if Valero shares close at or above initial share price on any quarterly valuation date other than final valuation date
|
| Initial price: | $57.79
|
| Barrier price: | $43.343, 75% of initial price
|
| Pricing date: | May 7
|
| Settlement date: | May 12
|
| Underwriter: | Citigroup Global Markets Inc.
|
| Fees: | 1%
|
| Cusip: | 1730T07M5
|
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