GS Finance plans trigger autocallables tied to SPDR S&P 500 ETF Trust

By Angela McDaniels

Tacoma, Wash., June 27 – GS Finance Corp. plans to price trigger autocallable contingent yield notes due June 29, 2018 linked to the SPDR S&P 500 ETF Trust, 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% per year if the trust’s shares close at or above the downside threshold on the observation date for that quarter. The downside threshold is expected to be 75% to 80% of the initial share price and will be set at pricing.

The notes will be automatically called at par of $10 if the trust closes at or above the initial share price on any quarterly observation date.

If the notes are not called and the final share price is greater than or equal to the downside threshold, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.

Goldman Sachs & Co. is the underwriter.

The notes will price June 28.

The Cusip number is 36250Y338.

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