Goldman Sachs plans callable range accrual notes tied to Russell 2000

By Angela McDaniels

Tacoma, Wash., Oct. 4 - Goldman Sachs Group, Inc. plans to price 10-year callable monthly range accrual notes linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

The interest rate will be 10% per year multiplied by the proportion of days on which the index's closing level is greater than or equal to 75% of the initial index level. Interest will be payable monthly.

If the final index level is greater than or equal to 50% of the initial index level, the payout at maturity will be par. If the final index level is less than 50% of the initial level, investors will be fully exposed to the index's decline from its initial level.

Beginning in October 2013, the notes will be callable at par on any interest payment date.

Goldman Sachs & Co. is the underwriter.

The Cusip number is 38143U7R6.

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