GS plans callable contingent coupon notes linked to indexes, EAFE ETF

By Angela McDaniels

Tacoma, Wash., Dec. 2 – GS Finance Corp. plans to price callable contingent coupon notes due Dec. 11, 2019 linked to the iShares MSCI EAFE exchange-traded fund, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

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

Each quarter, the notes will pay a contingent coupon at an annual rate of 8.65% if each underlier closes at or above its barrier level, 60% of its initial level, on the observation date for that quarter.

Beginning in June, the notes will be callable at par plus the coupon, if any, on any interest payment date.

If the return of each underlier is greater than or equal to negative 40%, the payout at maturity will be par plus the final coupon. Otherwise, investors will be fully exposed to the decline of the worst-performing underlier.

Goldman Sachs & Co. is the underwriter.

The notes will price Dec. 6.

The Cusip number is 40054KQZ2.

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