GS Finance plans to prices trigger autocallable contingent yield notes on indexes

By Wendy Van Sickle

Columbus, Ohio, Jan. 5– GS Finance Corp. plans to price trigger autocallable contingent yield notes due Jan. 19, 2027 linked to the Russell 2000 index and the MSCI EAFE index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes are guaranteed by Goldman Sachs Group, Inc.

Each quarter, the notes pay a contingent coupon at an annual rate of 7.5% to 8.5% if each index closes at or above its coupon barrier, 70% of its initial level, on the observation date for that quarter.

Beginning in January 2018, the notes will be automatically called at par of $10 if each index closes at or above its initial level on any quarterly observation date.

The payout at maturity will be par unless either index finishes below its downside threshold level, 50% of its initial level, in which case investors will be fully exposed to the decline of the lesser-performing index.

Goldman Sachs & Co. is the underwriter.

The notes (Cusip: 36251U640) will price on Jan. 13 and settle on Jan. 19.

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