By Toni Weeks
San Diego, March 15 - Citigroup Funding Inc. priced $61.96 million of callable leveraged CMS spread notes due March 16, 2026 linked to the 30-year and two-year Constant Maturity Swap rates, according to a 424B2 filing with the Securities and Exchange Commission.
The coupon will be 8% for the first year. After that, the rate will be four times the spread of the 30-year CMS rate over the two-year CMS rate, subject to a maximum interest rate of 10%. Interest is payable quarterly and cannot be less than zero.
The payout at maturity will be par.
The notes will be callable at par on any interest payment date beginning March 16, 2012.
Citigroup Global Markets Inc. is the underwriter.
| Issuer: | Citigroup Funding Inc.
|
| Issue: | Callable leveraged CMS spread notes
|
| Amount: | $61,961,000
|
| Maturity: | March 16, 2026
|
| Coupon: | 8% for one year; thereafter, four times spread of 30-year CMS rate over two-year CMS rate, with a cap of 10% and floor of 0%; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call option: | At par on interest payment dates after one year
|
| Pricing date: | March 11
|
| Settlement date: | March 16
|
| Underwriter: | Citigroup Global Markets Inc.
|
| Fees: | 3%
|
| Cusip: | 1730T0LW7
|
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