Citigroup Global Markets Holdings Inc. Issues $1,000 Principal Contingent Income Auto-Callable Securities Linked to Tesla
Citigroup Global Markets Holdings Inc., guaranteed by Citigroup Inc., is offering Contingent Income Auto-Callable Securities with Memory Coupon due November 4, 2027 based on the performance of Tesla, Inc. common stock. The securities have a stated principal amount of $1,000 per security, pay a contingent coupon of 3.15% quarterly (12.60% per annum) if Tesla's closing price meets or exceeds the downside threshold on valuation dates, and feature automatic early redemption if Tesla's price meets or exceeds the init...
Key takeaways
Contingent coupon of 3.15% per quarter (12.60% per annum) payable only if Tesla closing price is at or above the downside threshold price on the related valuation date
Memory coupon feature allows recovery of previously unpaid contingent coupons if a subsequent valuation date meets the threshold
Automatic early redemption occurs if Tesla's closing price equals or exceeds the initial share price on any potential redemption date
Downside threshold price is set at 60% of the initial share price; investors face potential loss of principal if Tesla declines more than 40%
At maturity, if Tesla closes below the downside threshold, investors receive $1,000 plus share return calculation, which could result in receiving as little as $0
Securities are not listed on any securities exchange and estimated value on pricing date is expected to be at least $70 below the $1,000 issue price
Risk factors include credit risk of issuer and guarantor, lack of upside exposure to Tesla, and dependency on closing prices only on specific valuation dates
Primary source
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