GS Finance plans contingent income callable notes tied to three indexes

By Wendy Van Sickle

Columbus, Ohio, Dec. 21 – GS Finance Corp. plans to price contingent income callable securities due Jan. 2, 2019 linked to the least performing of the Euro Stoxx 50 index, the Russell 2000 index and the S&P 500 index, according to an FWP 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 8.35% if each index closes at or above its downside threshold level, 65% of its initial index level, on the observation date for that quarter.

Beginning June 28, 2017, the notes will be callable at par on any quarterly determination date other than the final one.

If each index finishes at or above its downside threshold level, the payout at maturity will be par. If the final level of any index is less than its downside threshold level, investors will have one-to-one exposure to the decline of the least-performing index.

Goldman Sachs & Co. is the underwriter. Morgan Stanley Wealth Management is acting as dealer.

The notes will price Dec. 23.

The Cusip number is 40054KSH0.

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