Citigroup to price 8%-9% ELKS due May 2010 linked to McDonald's

By E. Janene Geiss

Philadelphia, April 27 - Citigroup Funding Inc. plans to price Equity LinKed Securities due May 2010 linked to the common stock of McDonald's Corp., according to an FWP filing with the Securities and Exchange Commission.

The notes will carry a coupon of 8% to 9%, with the exact rate to be set at pricing. Interest will be paid semiannually.

If McDonald's stock declines by 25% or more during the life of the notes, the payout at maturity will be a number of McDonald's shares equal to par of $10 divided by the initial share price or, at the holder's option, the value of those shares in cash. Otherwise, the payout will be par.

The issuer has applied to list the notes on the NYSE Arca under the symbol, "EBB."

The ELKS will price in May and settle three days later.

Citigroup Global Markets Inc. is the underwriter.

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