GS Finance plans 7% callable contingent coupon notes on S&P, Russell with step up to 11%

New York, June 1 – GS Finance Corp. plans to price callable contingent coupon notes due June 29, 2028 linked to the lesser 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 be guaranteed by Goldman Sachs Group, Inc.

During the first five years, the notes will pay a contingent quarterly coupon at an annual rate of 7% if both indexes close at or above 70% of their initial levels on the coupon determination date for that period. For the remaining five years, the contingent coupon steps up to 11%.

Starting in June 2019 and ending in May 2028, GS Finance may call the notes in whole but not in part at par plus any contingent coupon on any coupon payment date.

The payout at maturity will be par plus any final coupon unless any index finishes below 55% of its initial level, in which case investors will lose 1% for each 1% decline of the worst performing index from its initial level.

Goldman Sachs & Co. is the agent.

The notes will price on June 26 and settle on June 29.

The Cusip number is 40055QDR0.

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