By Devika Patel
Knoxville, Tenn., May 12 – Citigroup Global Markets Holdings Inc. priced $3.3 million of contingent income autocallable securities due Nov. 14, 2017 linked to the common stock of Marathon Oil Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Citigroup Inc.
The notes will pay a contingent monthly coupon at an annual rate of 12.75% if the shares close at or above the 70% downside threshold level on the observation date for that month.
The notes will be called at par of $10 plus the contingent coupon if the stock closes at or above the initial price on any determination date other than the final one beginning on June 9, 2017.
The payout at maturity will be par plus the final coupon unless the shares finish below the 70% downside threshold level, in which case investors will lose 1% for each 1% decline from the initial price.
Citigroup Global Markets Inc. is the underwriter, with Morgan Stanley Wealth Management handling distribution.
| Issuer: | Citigroup Global Markets Holdings Inc.
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| Guarantor: | Citigroup Inc.
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| Issue: | Contingent income autocallable securities
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| Underlying stock: | Marathon Oil Corp. (NYSE: MRO)
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| Amount: | $3.3 million
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| Maturity: | Nov. 14, 2017
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| Coupon: | 12.75% per year, payable monthly if Marathon shares close at or above downside threshold level on observation date for that month
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| Price: | Par of $10
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| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus final coupon; otherwise, 1% loss for every 1% that final share price is less than initial share price
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| Call: | At par plus contingent coupon if Marathon shares close at or above initial share price on any determination date other than final one beginning June 9, 2017
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| Initial share price: | $14.40
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| Downside threshold: | $10.08, 70% of initial share price
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| Pricing date: | May 9
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| Settlement date: | May 12
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| Underwriter: | Citigroup Global Markets Inc.
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| Distributer: | Morgan Stanley Wealth Management
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| Fees: | 1.25%
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| Cusip: | 17325K172
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