GS Finance eyes trigger autocallable contingent yield note on indexes

By Devika Patel

Knoxville, Tenn., July 3 – GS Finance Corp. plans to price trigger autocallable contingent yield notes due July 18, 2028 linked to the MSCI Emerging Markets index and the Russell 2000 index, 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 that is expected to fall between 6.8% and 7.8% if each index closes at or above its coupon barrier, 70% of its initial level, on the observation date for that quarter. The exact coupon will be set at pricing.

The notes will be called at par if each index closes at or above its initial level on any quarterly observation date beginning on July 15, 2019.

The payout at maturity will be par plus the final coupon, if any, unless either index finishes below the downside threshold level, 50% of its initial level, in which case investors will lose 1% for every 1% loss of the worse performing index from its initial level.

Goldman Sachs & Co. and UBS Financial Services Inc. are the agents.

The notes (Cusip: 36255U356) will price on July 13 and settle on July 18.

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