GS Finance eyes callable contingent coupon notes tied to indexes, ETF

By Devika Patel

Knoxville, Tenn., Sept. 12 – GS Finance Corp. plans to price callable contingent coupon notes due Sept. 20, 2021 linked to the least performing of the S&P 500 index, the Russell 2000 index and the iShares MSCI Emerging Markets exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

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

The notes will pay a contingent quarterly coupon at an annual rate of 10.25% if each underlying closes at or above the coupon barrier level, 80% of its initial level, on the coupon payment date for that quarter.

Beginning in March 2018 and ending in June 2021, the notes are callable in whole but not in part at par plus the contingent coupon on any coupon payment date.

The payout at maturity will be par plus the final coupon, if any, unless any underlying finishes below the downside threshold, 60% of its initial level, in which case investors will lose 1% for each 1% loss of the worst performing underlying.

Goldman Sachs & Co. is the agent.

The notes (Cusip: 40054LT53) will price on Sept. 13 and settle Sept. 18.

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