Goldman Sachs to price trigger notes tied to Bank of America stock

By Toni Weeks

San Luis Obispo, Calif., March 10 – Goldman Sachs Group, Inc. plans to price 0% equity-linked trigger notes due March 28, 2016 linked to the common stock of Bank of America Corp., according to a 424B2 filing with the Securities and Exchange Commission.

If the stock return is positive, the payout at maturity will be par plus the stock return times the applicable participation rate, subject to a maximum settlement amount, with the exact participation rate and maximum settlement amount to be determined based on the stock performance during the three-month observation period after pricing.

A trigger event occurs if the stock declines by 5% or more on any trading day during the observation period, which begins the day after the pricing date and ends on June 11.

If a trigger event occurs during the observation period, the upside participation rate will be 300%, and the maximum settlement amount will be $1,267 per $1,000 principal amount of notes. If a trigger event does not occur, the upside participation rate will be 200%, and the maximum settlement amount will be $1,178 per $1,000 of notes.

The final stock price will be the average of the closing stock prices on the five trading dates ending March 22, 2016.

The notes (Cusip: 38147QWY8) will price March 11 and settle March 16.

Goldman Sachs & Co. is the underwriter, and J.P. Morgan Securities LLC is the placement agent.

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