GS Finance plans callable contingent coupon notes tied to index, ETFs

By Devika Patel

Knoxville, Tenn., July 6 – GS Finance Corp. plans to price 42-month callable contingent coupon notes linked to the least performing of the S&P 500 index, the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund and the iShares MSCI EAFE exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

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

The notes will pay a contingent quarterly coupon at an annual rate of between 11.5% and 12.5% if each underlying closes at or above 75% of its initial level on every trading day during the preceding quarter. The exact coupon will be set at pricing.

Beginning in January 2018 and ending in October 2020, the notes are callable in whole but not in part at par plus the contingent coupon on any coupon payment date.

The payout at maturity will be par plus the final coupon, if any, unless any underlying finishes below 50% of its initial level, in which case investors will lose 1% for each 1% loss of the worst performing underlying.

Goldman Sachs & Co. is the agent.

The Cusip is 40054LKA1.

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