New Issue: GS Finance sells $991,000 callable fixed-coupon notes on index, fund

By Wendy Van Sickle

Columbus, Ohio, Jan. 25 – GS Finance Corp. priced $991,000 of 6.35% callable fixed-coupon securities due July 27, 2018 linked to the Euro Stoxx 50 index and the Financial Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.

The notes are guaranteed by Goldman Sachs Group, Inc.

Interest is payable quarterly.

Following an initial six-month non-call period, the notes are callable at par plus the coupon on any quarterly redemption date.

The payout at maturity will be par unless either asset finishes at or below the downside threshold level, 70% of the initial level, in which case investors will be fully exposed to the decline of the lesser performing asset.

The agent is Morgan Stanley & Co. LLC.

Issuer:	GS Finance Corp.
Guarantor:	Goldman Sachs Group, Inc.
Issue:	Callable fixed-coupon securities
Underlying assets:	Euro Stoxx 50 index, Financial Select Sector SPDR fund
Amount:	$991,000
Maturity:	July 27, 2018
Contingent payment:	6.35%, payable quarterly
Price:	Par of $1,000
Payout at maturity:	Par unless either asset finishes below downside threshold, in which case full exposure to decline of lesser performing asset
Call option:	At par on any quarterly redemption date after six months
Initial levels:	3,299.44 for index, $23.15 for fund
Downside thresholds:	70% of initial levels
Pricing date:	Jan. 20
Settlement date:	Jan. 27
Agent:	Morgan Stanley & Co. LLC
Fees:	1.65%
Cusip:	40054KU79

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