Goldman Sachs plans trigger phoenix autocallables linked to GM

By Angela McDaniels

Tacoma, Wash., April 8 – Goldman Sachs Group, Inc. plans to price trigger phoenix autocallable optimization securities due April 16, 2018 linked to the common stock of General Motors Co., according to a 424B2 filing with the Securities and Exchange Commission.

If GM stock closes at or above the trigger price on a monthly observation date, the issuer will pay a contingent coupon for that month at the rate of 8% per year. Otherwise, no coupon will be paid that month. The trigger price is expected to be 71% to 75% of the initial share price and will be set at pricing.

After one year, the notes will be called at par of $10 plus the contingent coupon if the shares close at or above the initial price on a monthly observation date.

If the notes are not called and GM shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the share price decline from the initial price.

Goldman Sachs & Co. is the underwriter.

The notes are expected to price April 10 and settle April 15.

The Cusip number is 38146U728.

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