Citigroup to price variable-coupon notes linked to 10 stocks

By Jennifer Chiou

New York, Jan. 13 - Citigroup Funding Inc. plans to price notes due Jan. 30, 2016 linked to a basket of 10 common stocks, according a 424B2 filing with the Securities and Exchange Commission.

The basket includes equal weights of Altria Group, Inc., Amazon.com, Inc., Amgen Inc., Archer-Daniels-Midland Co., AT&T Inc., Barrick Gold Corp., General Motors Co., Halliburton Co., Intel Corp. and Mattel, Inc.

The notes will pay a coupon each year equal to the greater of (a) the average of the stock performances on the applicable coupon observation date and (b) zero.

If a stock's return is greater than or equal to zero, its performance will be equal to the return cap, which is expected to be 8% to 10% and will be set at pricing. Otherwise, its performance will be the greater of the stock return and negative 30%.

The payout at maturity will be par plus the final coupon payment, if any.

The notes (Cusip: 1730T0VT3) are expected to price and settle in January.

Citigroup Global Markets Inc. is the agent.

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