New Issue: Citigroup prices $3.78 million strategic market access notes on 10 MLPs

By Marisa Wong

Madison, Wis., Jan. 30 - Citigroup Funding Inc. priced $3.78 million of strategic market access notes due Feb. 4, 2015 linked to a basket of 10 energy-related master limited partnerships, according to a 424B2 filing with the Securities and Exchange Commission.

The basket includes equal weights of Access Midstream Partners, LP, DCP Midstream Partners, LP, Enterprise Products Partners LP, EQT Midstream Partners, LP, Golar LNG Partners LP, MarkWest Energy Partners, LP, Targa Resources Partners, LP, Plains All American Pipeline, LP, Western Gas Partners, LP and Williams Partners LP. The basket will be rebalanced to equal weighting on Jan. 29, 2014.

The coupon has two components: a 0.1% fixed-interest amount and a variable-interest amount, which will equal the total amount of ordinary cash dividends with respect to the basket components for which an ex-date has occurred during each quarterly interest period, if any, for each $1,000 principal amount. Interest will be payable quarterly.

The payout at maturity will equal the net investment value of the note on the valuation date, plus accrued interest.

On the pricing date, the net investment value will be $990 per $1,000 note. After that, it will equal (i) $900 multiplied by the basket return percentage on that day plus (ii) accrued dividends up to and including that trading day minus (iii) the accumulated basket adjustment fee. Because the net investment value will be determined by multiplying the basket return percentage by $990 instead of $1,000, only 99% of the initial investment will participate in the appreciation, if any, of the basket.

The net investment value per note will be calculated after subtracting a 1% per year basket adjustment factor, which will accrue daily based upon the net investment value on the immediately preceding trading day.

Investors will receive an amount at maturity that is less than the initial investment unless the net investment value on the valuation date has increased from the net investment value at pricing by an amount greater than the sum of (i) the accumulated basket adjustment fee and (ii) a sales charge of $10 per note.

Citigroup Global Markets Inc. is the underwriter.

Issuer:	Citigroup Funding Inc.
Issue:	Strategic market access notes
Underlying MLPs:	Access Midstream Partners, LP, DCP Midstream Partners, LP, Enterprise Products Partners LP, EQT Midstream Partners, LP, Golar LNG Partners LP, MarkWest Energy Partners, LP, Targa Resources Partners, LP, Plains All American Pipeline, LP, Western Gas Partners, LP and Williams Partners LP; rebalanced to equal weighting on Jan. 29, 2014
Amount:	$3,777,000
Maturity:	Feb. 4, 2015
Coupon:	0.1% fixed-interest amount plus variable-interest amount equal to total amount of ordinary cash dividends with respect to basket components for which an ex-date has occurred during each quarterly interest period, if any, for each $1,000 principal amount; payable quarterly
Price:	Par of $1,000
Payout at maturity:	Net investment value of note on Jan. 30, 2015 plus accrued interest; net investment value is initially $990, after pricing it equals (i) $900 multiplied by basket return percentage on that day plus (ii) accrued dividends up to and including that trading day minus (iii) accumulated basket adjustment fee; 1% per year basket adjustment factor, which accrues daily based upon net investment value on immediately preceding trading day
Pricing date:	Jan. 28
Settlement date:	Jan. 31
Underwriter:	Citigroup Global Markets Inc.
Fees:	1%
Cusip:	1730T0RB7

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