GS Finance plans contingent income autocallables tied to SPDR S&P Oil

By Devika Patel

Knoxville, Tenn., July 6 – GS Finance Corp. plans to price contingent income autocallable securities due July 18, 2019 linked to the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

The notes are guaranteed by Goldman Sachs Group, Inc.

If the fund closes at or above the downside threshold level, 75% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 10.25%.

The notes will be called at par of $10 plus the contingent coupon if the fund closes at or above the initial share price on any coupon payment date other than the final one beginning on Oct. 15.

If the final share price is greater than or equal to the 75% downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.

Goldman Sachs & Co. is the agent, with Morgan Stanley Wealth Management handling distribution.

The notes (Cusip: 36255U372) will price July 13 and settle July 18.

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