Goldman Sachs plans trigger phoenix autocallables linked to Caterpillar

By Angela McDaniels

Tacoma, Wash., May 6 – Goldman Sachs Group, Inc. plans to price trigger phoenix autocallable optimization securities due May 14, 2020 linked to the common stock of Caterpillar Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Each month, the notes will pay a contingent coupon at the rate of 7% per year if Caterpillar stock closes at or above the trigger price, 68.5% to 73.5% of the initial share price, on the observation date for that month. The exact trigger price 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 any monthly observation date.

If the notes are not called and Caterpillar 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 will price May 8 and settle May 13.

The Cusip number is 38148W417.

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