Goldman plans autocallable contingent coupon notes linked to Facebook

By Marisa Wong

Morgantown, W.Va., Aug. 11 – Goldman Sachs Group, Inc. plans to price autocallable contingent coupon equity-linked notes due Aug. 31, 2016 tied to the class A common stock of Facebook, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at the rate of 13.35% per year if Facebook shares close at or above the trigger level, 75% of the initial share price, on the observation date for that quarter.

The notes will be automatically called at par plus the contingent coupon if the shares close at or above the initial share price on any quarterly call observation date.

If the notes have not been called and the stock finishes at or above the trigger level, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be fully exposed to the stock’s decline from its initial price.

The final share price will be the average of the closing prices of the stock on the five trading days ending Aug. 26, 2016.

Goldman Sachs & Co. is the underwriter with J.P. Morgan Securities LLC as placement agent.

The notes are expected to price Aug. 14 and settle Aug. 19.

The Cusip number is 38148TC23.

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