GS Finance eyes contingent coupon autocallables linked to indexes

By Sarah Lizee

Olympia, Wash., July 26 – GS Finance Corp. plans to price autocallable contingent coupon notes due Feb. 23, 2021 linked to the S&P 500 index, the Euro Stoxx 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.

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 8.55% per year.

The notes will be automatically called at par if each index closes at or above its initial level on any quarterly determination date after six months.

The payout at maturity will be par unless any index finishes below its initial level and any index has ever closed below 70% of its initial level during the life of the notes, in which case investors will be exposed to the decline of the least-performing index from its initial level.

Goldman Sachs & Co. LLC is the underwriter.

The notes will price Aug. 13.

The Cusip number is 40056FWN1.

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