Citigroup plans to price 20-year leveraged CMS spread notes

By Angela McDaniels

Tacoma, Wash., Oct. 6 – Citigroup Inc. plans to price leveraged CMS spread notes due Oct. 30, 2034, according to a 424B2 filing with the Securities and Exchange Commission on Tuesday.

The coupon will be 11% for the first year. After that, it will be four times the modified spread, subject to a minimum of zero and a maximum rate of 11% per year. The modified spread is the 30-year Constant Maturity Swap rate minus the two-year CMS rate minus 25 basis points. Interest will be payable quarterly.

The payout at maturity will be par.

Beginning Oct. 30, 2015, the notes will be callable at par on any coupon payment date.

Citigroup Global Markets Inc. is the agent.

The notes are expected to price Oct. 27.

The Cusip number is 1730T02B4.

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