Goldman plans callable CMS spread range accrual notes tied to indexes

By Wendy Van Sickle

Columbus, Ohio, Aug. 25 – GS Finance Corp. plans to price callable CMS spread and index-linked range accrual notes due Aug. 31, 2027 linked to the Russell 2000 index and the S&P 500 index, according to a 424B2 filed with the Securities and Exchange Commission.

Interest will be 8.5% for the first four quarterly interest payment dates. After that, it will accrue at 10 times the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate for each day that each index closes at or above the 70% coupon barrier, up to a maximum interest factor of 10%. Interest will be payable quarterly and cannot be less than zero.

The payout at maturity will be par unless either index falls below the 60% trigger level, in which case investors will be fully exposed to any losses of the worse performing index.

The notes will be callable at par on any interest payment date after one year.

Goldman Sachs Group, Inc. is the guarantor.

Goldman Sachs & Co. is the agent.

The notes will price on Aug. 29 and settle on Aug. 31.

The Cusip number is 40054LQ56.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.