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

By Angela McDaniels

Tacoma, Wash., Oct. 7 – GS Finance Corp. plans to price callable contingent coupon notes due Oct. 31, 2029 linked to lesser performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon if each index closes at or above its barrier level, 75% of its initial level, on the observation date for that quarter. The contingent coupon rate is expected to be at least 7% per year for the first 20 payment dates, 8.5% for the next 12 payment dates and 10% per year for the final eight payment dates.

The notes will be callable at par on any interest payment date.

The payout at maturity will be par unless the return of either index is less than negative 40%, in which case investors will be fully exposed to the decline of the lesser-performing index.

The notes will be guaranteed by Goldman Sachs Group, Inc.

Goldman Sachs & Co. LLC is the underwriter.

The notes will price Oct. 28.

The Cusip number is 40056XGQ3.

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