Goldman plans trigger phoenix autocallables tied to Russell, Euro Stoxx

By Tali Rackner

Norfolk, Va., Oct. 20 – Goldman Sachs Group, Inc. plans to price trigger phoenix autocallable optimization securities due Oct. 31, 2025 linked to the worst performing of the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay an annualized contingent coupon of 8.4% to 9% if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date for that quarter. The exact coupon will be set at pricing.

Beginning Oct. 27, 2016, the notes will be called at par of $10 if each index closes at or above its initial level on any quarterly observation date.

If the final level of each index is greater than or equal to the 70% coupon barrier level, the payout at maturity will be par plus the final contingent coupon.

If each index finishes by less than 70% of its initial value but greater than its 50% trigger level, the payout will be par.

If either index finishes below its 50% trigger level, investors will be fully exposed to the decline of the worse performing index.

Goldman Sachs & Co. is the agent.

The notes are expected to price on Oct. 28 and settle on Oct. 30.

The Cusip number is 38148X472.

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