Citibank to price five-year market-linked CDs on basket of 10 stocks

By Marisa Wong

Morgantown, W.Va., Aug. 27 – Citibank, NA plans to price variable coupon market-linked certificates of deposit due Aug. 31, 2023 linked to a basket of stocks, according to a term sheet.

The equally weighted basket includes the stocks of Ford Motor Co., AT&T, Inc., Cisco Systems, Inc., Verizon Communications, Inc., Exxon Mobil Corp., Altria Group, Inc., Merck & Co., Inc., Chevron Corp., Apple, Inc. and International Business Machines Corp.

The CDs will pay a coupon each year equal to the sum of the weighted modified underlying returns of the underlying stocks, subject to a minimum rate of 1.25%.

If the underlying return of a stock on any annual valuation date (measured from the pricing date to the applicable valuation date) is zero or positive, the modified underlying return will equal 5%; if the underlying return is negative, the modified underlying return will equal the underlying return, subject to a floor of negative 15%.

The payout at maturity will be par plus the final coupon.

Citigroup Global Markets Inc. is the agent. Incapital LLC is distributor.

The CDs will price Aug. 28.

The Cusip number is 17294XFX9.

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