Goldman plans callable buffered monthly range accrual notes on Russell

By Susanna Moon

Chicago, Aug. 9 - Goldman Sachs Group, Inc. plans to price callable buffered monthly Russell 2000 index-linked range accrual notes due Aug. 30, 2028, according to a 424B2 filing with the Securities and Exchange Commission.

Interest will accrue at a rate for each day that the index closes at or above trigger level, 70% to 75% of the initial index level, with the exact trigger level to be set at pricing. The rate will be 7% for the first 48 months, stepping up to 8% for the next 36 months and then to 10% for the final 36 months. Interest is payable monthly.

The payout at maturity will be par if the index falls by up to the 25% to 30% buffer, with the exact percentage to be set at pricing.

Otherwise, investors will lose between 1.3333% and 1.4286% for each 1% decline beyond the buffer. The exact buffer rate also will be set at pricing.

The notes will be callable at par on any interest payment date beginning in August 2015.

Goldman Sachs & Co. is the underwriter.

The Cusip number is 38147QMS2.

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