By Angela McDaniels
Seattle, Oct. 29 - Citigroup Funding Inc. priced $8.48 million of 0% Premium Mandatory Callable Equity-linked Securities (Pacers) due April 30, 2009 linked to an equally weighted basket containing the PHLX Oil Service Sector and S&P GSCI Energy Excess Return indexes, according to a 424B2 filing with the Securities and Exchange Commission.
The securities will be called at increasing premiums if the basket value is greater than or equal to its initial value during the three-business-day periods beginning on April 28, 2008, Oct. 28, 2008 and April 23, 2009. The redemption amount will be par of $10.00 plus 6.5% if the securities are called during the first call period, par plus 13% if called during the second period and par plus 19.5% if called during the third period.
If the securities are not called, the payout at maturity will be par unless the basket closes at or below the trigger value - 80% of the initial value - during the life of the securities, in which case investors will receive a cash amount equal to the final basket value multiplied by the product of $10.00 divided by the initial basket value.
Citigroup Global Markets Inc. is the underwriter.
| Issuer: | Citigroup Funding Inc.
|
| Issue: | Premium Mandatory Callable Equity-linked Securities (Pacers)
|
| Underlying basket: | PHLX Oil Service Sector and S&P GSCI Energy Excess Return indexes, equally weighted
|
| Amount: | $8.48 million
|
| Maturity: | April 30, 2009
|
| Coupon: | 0%
|
| Price: | Par of $10.00
|
| Payout at maturity: | If basket falls by 20% or more during the life of the securities, a cash amount equal to 0.1 multiplied by the final basket value; otherwise, par
|
| Call: | If basket value is greater than or equal to initial basket value during the three redemption periods; payout will be $10.65 per security if called in April 2008, $11.30 if called in October 2008 and $11.95 if called in April 2009
|
| Initial basket value: | 100
|
| Pricing date: | Oct. 25
|
| Settlement date: | Oct. 30
|
| Underwriter: | Citigroup Global Markets Inc.
|
| Fees: | 2.25%
|
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