FWP 1 y23012afwp.txt FREE WRITING PROSPECTUS CITIGROUP CAPITAL XIV FILED PURSUANT TO RULE 433 2,600,000 CAPITAL SECURITIES FILE NOS. 333-135163, 333-135163-04 6.875% ENHANCED TRUST PREFERRED SECURITIES (ENHANCED TRUPS(r)) $25 LIQUIDATION AMOUNT GUARANTEED BY CITIGROUP INC. TO THE EXTENT SET FORTH IN THE PROSPECTUS [Citigroup Logo] -------------------------------------------------------------------------------- Terms and Conditions: -------------------------------------------------------------------------------- Issuer: Citigroup Capital XIV, a Delaware statutory trust, the sole assets of which are junior subordinated debt securities issued by Citigroup Inc. -------------------------------------------------------------------------------- Guarantee: $25 liquidation amount per enhanced trust preferred security, guaranteed by Citigroup Inc. to the extent set forth in the Prospectus. -------------------------------------------------------------------------------- Ratings: Aa2/A/AA (Moody's / S&P / Fitch) -------------------------------------------------------------------------------- Trade Date (over-allotment): July 6, 2006 -------------------------------------------------------------------------------- Settlement Date (over-allotment): July 13, 2006 (T+5 days) -------------------------------------------------------------------------------- Maturity: June 30, 2066 -------------------------------------------------------------------------------- Amount (over-allotment): 2,600,000 enhanced trust preferred securities (the "capital securities"), issued pursuant to the underwriters' exercise of their over-allotment option -------------------------------------------------------------------------------- Total Amount: 22,600,000 capital securities -------------------------------------------------------------------------------- Coupon: 6.875% per annum -------------------------------------------------------------------------------- Public Offering Price (over-allotment): $25 per capital security plus accrued interest from June 30, 2006 -------------------------------------------------------------------------------- Gross Fee: $0.7875 per capital security (to be paid by Citigroup Inc.) Management Fee: $0.1575 per capital security Underwriting Fee $0.13 per capital security Sales Concession: $0.50 per capital security Re-allowance: $0.45 per capital security -------------------------------------------------------------------------------- Purchase Price (over-allotment): $25 per capital security plus accrued interest from June 30, 2006 -------------------------------------------------------------------------------- Net Proceeds to Citigroup (over-allotment): $63,000,000 (estimated) -------------------------------------------------------------------------------- Total Net Proceeds to Citigroup: $546,750,000 (estimated) -------------------------------------------------------------------------------- Interest Payment Dates: Quarterly on the 30th of each March, June, September and December. Modified Following business day convention for the December interest payment dates, Following business day convention for all other interest payment dates. -------------------------------------------------------------------------------- First Coupon: September 30, 2006. -------------------------------------------------------------------------------- Day Count: 30/360. -------------------------------------------------------------------------------- Deferral of Interest: Payment of interest on the capital securities will be deferred to the extent Citigroup Inc. elects to defer interest on the junior subordinated debt securities held by the issuer. Citigroup may so defer interest for up to 40 consecutive quarterly interest payment dates. However, after so deferring interest for 20 consecutive quarterly interest payment dates, with certain exceptions, Citigroup is obligated to sell equity securities and use the proceeds thereof to pay deferred interest unless the Federal Reserve, after receiving notice of these actions, has disapproved of either of these actions. -------------------------------------------------------------------------------- CITIGROUP CAPITAL XIV FILED PURSUANT TO RULE 433 2,600,000 CAPITAL SECURITIES FILE NOS. 333-135163, 333-135163-04 6.875% ENHANCED TRUST PREFERRED SECURITIES (ENHANCED TRUPS(r)) $25 LIQUIDATION AMOUNT GUARANTEED BY CITIGROUP INC. TO THE EXTENT SET FORTH IN THE PROSPECTUS [Citigroup Logo] -------------------------------------------------------------------------------- Redemption at Issuer Option: Subject to the Capital Replacement Covenant, Citigroup may redeem the underlying junior subordinated debt securities, and thus redeem the capital securities, at any time on or after June 30, 2011 or upon the occurrence of a tax event, an investment company event or a regulatory capital event. Redemption in whole or in part. -------------------------------------------------------------------------------- Capital Replacement Covenant: Citigroup Inc. has agreed not to redeem the junior subordinated debt securities during the term of the Capital Replacement Covenant except with proceeds of the sale of Citigroup equity securities. The Capital Replacement Covenant will terminate no later than June 30, 2036. -------------------------------------------------------------------------------- Sinking Fund: Not applicable. -------------------------------------------------------------------------------- Listing: Application has been made to list the capital securities on the New York Stock Exchange. -------------------------------------------------------------------------------- Number of Capital Securities Purchased (over-allotment) ---------------- -------------------------------------------------------------------------------- Sole Structuring Coordinator and Sole Bookrunner: Citigroup Global Markets Inc. 399,777 -------------------------------------------------------------------------------- Senior Co-Managers: Merrill Lynch, Pierce, Fenner & 399,750 Smith Incorporated Morgan Stanley & Co. Incorporated 399,750 UBS Securities LLC 399,750 Wachovia Capital Markets, LLC 399,750 -------------------------------------------------------------------------------- Junior Co-Managers: Banc of America Securities LLC 65,000 Bear, Stearns & Co. Inc. 65,000 Lehman Brothers Inc. 65,000 RBC Dain Rauscher Inc. 65,000 -------------------------------------------------------------------------------- Capital Securities CUSIP/ISIN: 17309E200/US17309E2000 -------------------------------------------------------------------------------- Citigroup Capital XIV and Citigroup Inc. have filed a registration statement (including a prospectus) with the Securities and Exchange Commission for the offering to which this communication relates. Before you invest, you should read the prospectus in the registration statement and the other documents Citigroup Capital XIV and Citigroup have filed with the SEC for more complete information about Citigroup Capital XIV, Citigroup and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. The file number for the registration statement is No. 333-135163. Alternatively, you can request the prospectus by calling toll-free in the United States 1-877-858-5407.