GS Finance eyes trigger callable contingent yield floaters on indexes

By Sarah Lizee

Olympia, Wash., Dec. 18 – GS Finance Corp. plans to price floating-rate trigger callable contingent yield notes due Dec. 27, 2028 linked to the least performing of the Russell 2000 index, the MSCI Emerging Markets 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.

Each quarter, the notes pay a contingent coupon if each index’s closing level is at or above its coupon barrier, 50% of its initial level, on the observation date that quarter. The contingent coupon rate is Libor plus 475 basis points to 500 bps per year, subject to a floor of zero.

After one year, the notes are callable at par on each quarterly observation date other than the final one beginning Dec. 27, 2019.

If the notes are not called and each index finishes at or above its downside threshold, 50% of its initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the least-performing index’s final level is below its initial level.

Goldman Sachs & Co. is the agent with UBS Financial Services Inc. acting as distributor.

The notes will price on Dec. 21.

The Cusip number is 36256M817.

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