GS Finance plans callable contingent coupon notes tied to index, ETF

By Devika Patel

Knoxville, Tenn., March 21 – GS Finance Corp. plans to price callable contingent coupon notes due March 31, 2020 linked to the least performing of the S&P 500 index and the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

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

The notes will pay a contingent quarterly coupon at an annual rate of between 10.5% and 11.5% if each underlying closes at or above 70% of its initial level on the coupon payment date for that quarter. The exact coupon will be set at pricing.

Beginning in September 2017 and ending in December 2019, the notes are callable at par plus the contingent coupon on any coupon payment date.

The payout at maturity will be par plus the final coupon unless either underlying finishes below 70% of its initial level, in which case investors will lose 1% for each 1% loss of the worst performing underlying.

Goldman Sachs & Co. is the agent.

The notes (Cusip: 40054KYC4) will price on March 28 and settle on March 31.

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