Citigroup plans to price 20-year callable leveraged CMS spread notes

By Susanna Moon

Chicago, Aug. 23 - Citigroup Funding Inc. plans to price callable leveraged CMS spread notes due Sept. 17, 2030, according to an FWP filing with the Securities and Exchange Commission.

The coupon will be 11.1% for the first year. After that, the rate will be four times the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate minus 25 basis points, up to a maximum of 11.1% per year in each interest period. Interest will be 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 Sept. 17, 2011.

The notes (Cusip 1730T0KD0) will price and settle sometime this year.

Citigroup Global Markets Inc. is the underwriter.

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