GS Finance plans contingent coupon autocallables tied to S&P, Russell

By Sarah Lizee

Olympia, Wash., Jan. 4 – GS Finance Corp. plans to price autocallable contingent coupon notes due Aug. 4, 2020 linked to 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.

Each quarter, the notes will pay a contingent coupon if each index closes at or above its barrier level, 70% of its initial level, on the observation date for that quarter. The contingent coupon rate is expected to be 9.25% to 10.25% per year and will be set at pricing.

Beginning in July, the notes will be automatically called at par if each index closes at or above its initial level on any quarterly determination date.

The payout at maturity will be par plus the coupon unless the return of either index is less than negative 30%, in which case investors will be exposed to the decline of the lesser-performing index from its initial level.

Goldman Sachs & Co. is the underwriter.

The notes will price Jan. 28.

The Cusip number is 40056EQC5.

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