By Marisa Wong
Madison, Wis., July 29 - Citigroup Inc. priced $9 million of callable leveraged CMS spread notes due July 30, 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 9.3% for the first year. After that, it will be 4 times the modified CMS spread, subject to a minimum interest rate of 0% and a maximum interest rate of 9% per year. The modified CMS spread will be the 30-year CMS rate minus the two-year CMS rate minus 25 basis points. Interest will be payable quarterly.
The payout at maturity will be par.
Beginning on July 30, 2016, the notes will be callable at par on any interest payment date.
Citigroup Global Markets Inc. is the underwriter.
Issuer: | Citigroup Inc.
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Issue: | Callable leveraged CMS spread notes
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Amount: | $9 million
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Maturity: | July 30, 2033
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Coupon: | 9.3% for first year; after that, 4 times modified CMS spread, floor of 0% and cap of 9%; modified CMS spread will be 30-year CMS rate minus two-year CMS rate minus 25 bps; payable quarterly
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Price: | Par
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Payout at maturity: | Par
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Call option: | At par on any interest payment date beginning July 30, 2016
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Pricing date: | July 25
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Settlement date: | July 30
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Agent: | Citigroup Global Markets Inc.
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Fees: | 2.6%
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Cusip: | 1730T0UK3
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