GS Finance plans trigger phoenix autocallables linked to SPDR S&P 500

By Angela McDaniels

Tacoma, Wash., Feb. 4 – GS Finance Corp. plans to price trigger phoenix autocallable optimization securities due Feb. 9, 2018 linked to the SPDR S&P 500 ETF Trust, 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 at the rate of 8% per year if the trust closes at or above its barrier level on the observation date for that quarter. The barrier level is expected to be 72.5% to 77.5% of the initial share price and will be set at pricing.

The notes will be called at par of $10 if the trust closes at or above its initial share price on any quarterly observation date.

If the final share price is greater than or equal to the barrier level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will be fully exposed to the trust’s decline.

Goldman Sachs & Co. is the agent.

The notes are expected to price Feb. 5.

The Cusip number is 36250E357.

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