Goldman plans 10%-11% contingent coupon callable notes tied to funds

By Susanna Moon

Chicago, Aug. 7 – GS Finance Corp. plans to price callable contingent coupon notes due Aug. 31, 2019 linked to the SPDR S&P Biotech exchange-traded fund and the SPDR S&P Oil & Gas Exploration & Production ETF, according to a 424B2 filing with the Securities and Exchange Commission.

The notes pay a contingent monthly coupon at an annual rate of 10% to 11% if each fund closes at or above its 65% coupon barrier on the observation date for that month.

The notes are callable at par on any quarterly call observation date from February 2018 through May 2019.

The payout at maturity will be par unless either fund finishes below its 65% trigger level, in which case investors will be fully exposed to any losses of the worse performing fund.

The notes are guaranteed by Goldman Sachs Group, Inc.

Goldman Sachs & Co. is the underwriter.

The notes will price on Aug. 28 and settle on Aug. 31.

The Cusip number is 40054LNR1.

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