Citigroup plans fixed-to-floaters due 2038 on leveraged CMS spread

By Sarah Lizee

Olympia, Wash., April 25 – Citigroup Global Markets Holdings Inc. plans to price callable fixed-to-floating notes due May 18, 2038 linked to the leveraged difference between the 30-year Constant Maturity Swap rate and the two-year Constant Maturity Swap rate, according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be 10% until May 18, 2020. After that, the rate will be equal to 9 times the spread of the 30-year CMS rate over the two-year CMS rate, subject to a maximum rate of 10%. Interest will be payable quarterly and cannot be less than zero.

The payout at maturity will be par.

The notes are callable quarterly in whole at par beginning May 18, 2020.

The notes will be guaranteed by Citigroup Inc.

Citigroup Global Markets Inc. is the agent.

The notes are expected to price on May 16 and settle two business days after the pricing date.

The Cusip number is 17324CUN4.

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