GS Finance plans callable contingent coupon notes due 2028 on indexes

By Sarah Lizee

Olympia, Wash., Oct. 8 – GS Finance Corp. plans to price callable contingent coupon notes due Oct. 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.

The notes will pay a contingent quarterly coupon at an annual rate of 7% for the first five years, 9% for the next three years and 15% for the last two years if the closing level of each index is greater than or equal to 75% of its initial level on the related coupon determination dates.

Beginning in January 2019, the notes are callable in whole but not in part at par plus any coupon on any coupon payment date.

If the return of each index is greater than or equal to negative 25%, the payout at maturity will be par plus the final coupon. If the index return of each index is less negative 25% but greater than or equal to negative 50%, the payout will be par. If the index return of any index is less than negative 50%, investors will be fully exposed to the loss of the lesser performing index from its initial level.

Goldman Sachs & Co. is the agent.

The notes (Cusip: 40056E3Z9) will price on Oct. 29.

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