Goldman Sachs plans callable monthly range accrual notes on Russell

By Toni Weeks

San Luis Obispo, Calif., July 15 - Goldman Sachs Group, Inc. plans to price 10-year callable monthly Russell 2000 index-linked range accrual notes, according to a 424B2 filing with the Securities and Exchange Commission.

The interest rate will be the applicable rate multiplied by the proportion of days on which the index closes at or above coupon barrier, 70% to 75% of the initial index level. The applicable rate will be 7% per year for the first four years, 8% per year for the next three years and 10% per year for the final three years. Interest is payable monthly.

The payout at maturity will be par if the index finishes at or above 70% to 75% of the initial level. Otherwise, investors will lose between 1.4286% and 1.3333% per each 1% decline in the index beyond the buffer level.

The notes will be callable at par on any interest payment date beginning August 2015.

The exact terms will be set at pricing.

The Cusip number is 38147QGE0.

Goldman Sachs & Co. is the underwriter.

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