Published on 1/24/2007 in the Prospect News Convertibles Daily and Prospect News Structured Products Daily.
New Issue: Citigroup prices $13.83 million 10.134% ELKS linked to Barrick
By Laura Lutz
Pittsburgh, Jan. 24 - Citigroup Funding Inc. priced a $13.825 million issue of Equity LinKed Securities (ELKS) due Aug. 7, 2007 linked to the common stock of Barrick Gold Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay six-month interest of 2.827% and an option premium of 2.24%, for an annual coupon of 10.134%.
The payout at maturity will be par of $10.00 in cash unless Barrick stock trades below the trigger price - 80% of the initial share price - during the life of the notes, in which case the payout will be 0.35273 shares of Barrick stock, equal to $10.00 divided by the initial share price.
| Issuer: | Citigroup Funding Inc.
|
| Issue: | Equity LinKed Securities (ELKS)
|
| Underlying stock: | Barrick Gold Corp.
|
| Amount: | $13.825 million
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| Maturity: | Aug. 7, 2007
|
| Coupon: | 10.134%
|
| Price: | Par of $10
|
| Payout at maturity: | If Barrick stock falls by 20% or more during the life of the notes, 0.35273 shares of Barrick stock; otherwise, par in cash
|
| Initial price: | $28.35
|
| Trigger price: | $22.68, 80% of $28.35
|
| Pricing date: | Jan. 22
|
| Settlement date: | Jan. 25
|
| Underwriter: | Citigroup
|
| Fees: | 1.25%
|
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