GS Finance plans contingent income callable securities on three indexes

By Devika Patel

Knoxville, Tenn., Feb. 13 – GS Finance Corp. plans to price contingent income callable securities due Feb. 22, 2019 linked to the least performing of the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 index, according to an FWP filing with the Securities and Exchange Commission.

The notes are guaranteed by Goldman Sachs Group, Inc.

Each quarter, the notes will pay a contingent coupon at an annual rate of 8% if each index closes at or above its downside threshold level, 65% of its initial index level, on the determination date for that quarter.

The notes are callable at par on any quarterly determination date starting on Aug. 22, 2017 and ending on Nov. 23, 2018.

If each index finishes at or above its downside threshold level, the payout at maturity will be par plus the final contingent coupon. If the final level of any index is less than its 65% downside threshold level, investors will lose 1% for each 1% decline of the least-performing index from its initial level.

Goldman Sachs & Co. is the agent. Morgan Stanley Wealth Management is acting as dealer.

The notes (Cusip: 40054KWR3) will price on Feb. 17 and settle three business days after pricing.

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