GS plans callable contingent coupon notes linked to S&P, oil & gas ETF

By Angela McDaniels

Tacoma, Wash., Dec. 6 – GS Finance Corp. plans to price callable contingent coupon notes due Dec. 30, 2019 linked to 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.

Every six months, the notes will pay a contingent coupon if each underlier closes at or above its barrier level, 60% of its initial level, on the observation date for that semiannual period. The contingent coupon rate is expected to be 11.5% to 12.5% per year and will be set at pricing.

The notes will be callable at par plus the coupon, if any, on any interest payment date.

If the return of each underlier is greater than or equal to negative 40%, the payout at maturity will be par plus the final coupon. Otherwise, investors will be fully exposed to the decline of the lesser-performing underlier.

Goldman Sachs & Co. is the underwriter.

The notes will price Dec. 23.

The Cusip number is 40054KQ74.

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