Goldman plans 3.75% fixed-to-float CMS spread notes due 2021

By Susanna Moon

Chicago, Aug. 8 – GS Finance Corp. plans to price quarterly CMS spread-linked notes due in 36 to 39 months, according to a 424B2 filing with the Securities and Exchange Commission.

The coupon will be fixed at 3.75% for the first year. After that, interest will accrue at between 11 and 12 times the spread of the 10-year Constant Maturity Swap rate over the two-year CMS rate, up to a maximum rate of 9%. Interest is payable quarterly and cannot be less than zero.

The notes are callable at par on any quarterly review date after one year.

The payout at maturity will be par.

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

Goldman Sachs & Co. LLC is the underwriter.

The Cusip number is 40055QR20.

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