GS Finance plans contingent income callable notes linked to S&P 500

By Angela McDaniels

Tacoma, Wash., April 1 – GS Finance Corp. plans to price contingent income callable securities due April 20, 2026 linked to the S&P 500 index, according to an FWP 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 at the rate of 8.1% per year if the index closes at or above its downside threshold level, 75% of its initial index level, on the determination date for that quarter.

Beginning April 20, 2017, the notes will be callable at par on any quarterly coupon payment date other than the final one.

If the index finishes at or above its downside threshold level, 60% of its initial level, the payout at maturity will be par plus the final contingent coupon, if any. If the final index level is less than the downside threshold level, investors will be fully exposed to the index’s decline from its initial level.

Goldman Sachs & Co. is the underwriter. Morgan Stanley Wealth Management is acting as dealer.

The notes will price April 15.

The Cusip number is 36250E688.

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