Goldman plans callable monthly range accrual notes on Russell 2000

By Toni Weeks

San Luis Obispo, Calif., July 1 – Goldman Sachs Group, Inc. plans to price callable monthly Russell 2000 index-linked range accrual notes due July 31, 2029, 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 75% of the initial index level. The applicable rate is 7% for the first 60 interest payment dates, 8% for the next 60 interest payment dates and 9% for the final 60 interest payment dates. Interest is payable monthly.

The payout at maturity will be par if the index finishes at or above 50% of the initial level. Investors will be fully exposed to losses from the initial level if the index finishes below the 50% trigger.

The notes will be callable at par on any interest payment date beginning Oct. 31.

Goldman Sachs & Co. is the underwriter.

The notes (Cusip: 38147QBY1) are expected to price July 29 and settle July 31.

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