Citigroup to price ELKS linked to Morgan Stanley

By Susanna Moon

Chicago, Oct. 23 - Citigroup Funding Inc. plans to price one-year Equity LinKed Securities (ELKS) linked to the common stock of Morgan Stanley, according to an FWP filing with the Securities and Exchange Commission.

The notes are expected to carry a coupon of between 9% and 10%, with the exact rate to be set at pricing. Interest will be payable semiannually.

The payout at maturity will be par of $10 in cash unless the stock declines by 25% or more during the life of the ELKS, in which case the payout will be a number of Morgan Stanley shares equal to $10 divided by the initial price or, at the holder's option, the equivalent cash value.

The issue is expected to price in November.

Citigroup Global Markets Inc. is the underwriter.

The notes will be listed on the American Stock Exchange under the symbol "EBB."

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