Goldman plans 10-year contingent coupon callable notes tied to indexes

By Susanna Moon

Chicago, May 4 – GS Finance Corp. plans to price callable contingent coupon notes due May 31, 2027 linked to the worse performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate if each index closes at or above its 70% coupon barrier on the observation date for that quarter. The contingent coupon will be 7% for the first 24 payment dates, stepping up to 10% for the next eight payment dates and to 12% for the final eight payment dates.

The notes are callable at par on any contingent coupon payment date after one year.

The payout at maturity will be par plus the contingent coupon unless either index finishes below its 50% trigger level, in which case investors will be fully exposed to the decline of the worse performing index.

The notes are guaranteed by Goldman Sachs Group, Inc.

Goldman Sachs & Co. is the underwriter.

The notes will price on May 26 and settle on May 31.

The Cusip number is 40054LB60.

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