GS Finance plans trigger autocallable contingent yield notes tied to S&P 500, Russell 2000 indexes

By Devika Patel

Knoxville, Tenn., June 6 – GS Finance Corp. plans to price 0% trigger autocallable contingent yield notes due June 14, 2019 linked to the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be guaranteed by Goldman Sachs Group, Inc.

The notes will pay a contingent quarterly coupon at an annual rate of between 6.75% and 7.75% if each index closes at or above its coupon barrier, 70% of its initial level, on the observation date for that quarter. The exact coupon will be set at pricing.

The notes will be called at par if each index closes at or above its initial level on any quarterly observation date beginning in December 2016.

The payout at maturity will be par plus the final coupon unless either index finishes below the downside threshold level, 70% of the initial level, in which case investors will lose 1% for every 1% loss of the worse performing index.

Goldman Sachs & Co. is the agent.

The notes (Cusip: 36250Y254) will price on June 10 and settle on June 15.

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