GS Finance eyes callable contingent coupon notes tied to Russell, S&P

By Devika Patel

Knoxville, Tenn., July 9 – GS Finance Corp. plans to price callable contingent coupon notes due July 31, 2028 linked to the least 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.

For the first 20 coupon payment dates, the notes will pay a contingent quarterly coupon at an annual rate of 7% if both indexes close at or above 75% of their respective initial levels on the coupon payment date for those quarters beginning Oct. 31, 2018. For the final 20 coupon payment dates, the notes will pay a contingent quarterly coupon at an annual rate of 14% if both indexes close at or above 75% of their respective initial levels on the coupon payment date for those quarters.

Beginning on July 31, 2019 and ending on April 30, 2028, the notes are callable in whole but not in part at par plus any coupon on any quarterly coupon payment date.

The payout at maturity will be par plus the final coupon, if any, unless either 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 (Cusip: 40055QM25) will price on July 27 and settle on July 31.

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