GS Finance aims to sell contingent income autocallable linked to BofA

By Devika Patel

Knoxville, Tenn., Jan. 2 – GS Finance Corp. plans to price contingent income autocallable securities due Jan. 8, 2021 linked to the common stock of Bank of America Corp., according to an FWP filing with the Securities and Exchange Commission.

The notes are guaranteed by Goldman Sachs Group, Inc.

If BofA shares close at or above the downside threshold level, 80% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 8.3%.

Beginning on April 5, 2018 and ending on Oct. 5, 2020, the notes will be called if BofA shares close at or above the initial share price.

If the final share price is greater than or equal to the 80% downside threshold level, 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 agent, with Morgan Stanley Wealth Management handling distribution.

The notes (Cusip: 36254F590) will price on Jan. 5 and settle three business days after pricing.

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