Goldman plans callable CMS spread range accrual notes on two indexes

By Susanna Moon

Chicago, April 6 – GS Finance Corp. plans to price callable CMS spread and index-linked range accrual notes due April 28, 2032 linked to the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes are guaranteed by Goldman Sachs Group, Inc.

Interest will be 8% for the first year. After that, it will accrue at 20 times the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate for each day that each index closes at or above the 50% coupon barrier, up to a maximum interest factor of 8%. Interest will be payable quarterly and cannot be less than zero.

The payout at maturity will be par unless either index falls by more than 50%, in which case investors will be fully exposed to any losses of the worse performing index.

The notes will be callable at par on any interest payment date after one year.

Goldman Sachs & Co. is the agent.

The notes will price on April 26 and settle on April 28.

The Cusip number is 40054L5M2.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.