GS Finance to price trigger phoenix autocallables linked to indexes

By Angela McDaniels

Tacoma, Wash., Feb. 22 – GS Finance Corp. plans to price trigger phoenix autocallable optimization securities due Feb. 27, 2026 linked to the worst performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be guaranteed by Goldman Sachs Group, Inc.

Each quarter, the notes will pay a contingent coupon at the rate of 8.5% to 9.5% per year if each index closes at or above its barrier level, 70% of its initial level, on the observation date for that quarter.

Beginning in February 2017, the notes will be called at par of $10 if each index closes at or above its initial level on any quarterly observation date.

The payout at maturity will be par plus the final contingent coupon, if applicable, unless either index declines by more than 50%, in which case investors will be fully exposed to the decline of the lesser-performing index.

Goldman Sachs & Co. is the agent.

The notes are expected to price Feb. 25.

The Cusip number is 36250E415.

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