Citigroup plans to price 8%-12% ELKS tied to Freeport-McMoRan stock

By Marisa Wong

Milwaukee, April 1 - Citigroup Funding Inc. plans to price six-month Equity LinKed Securities tied to the common stock of Freeport-McMoRan Copper and Gold Inc., according to an FWP filing with the Securities and Exchange Commission.

The coupon will be 8% to 12% per year and will be paid at maturity. The exact rate will be set at pricing.

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

The notes are expected to price and settle in April.

Citigroup Global Markets Inc. is the underwriter.

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