GS plans contingent coupon autocallables linked to Alibaba, Nordstrom

By Angela McDaniels

Tacoma, Wash., Jan. 24 – GS Finance Corp. plans to price 12-month autocallable contingent coupon equity-linked notes linked to the American Depositary Shares of Alibaba Group Holding Ltd. and the common stock of Nordstrom, Inc., 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 if each stock’s closing share price is greater than or equal to 65% of its initial share price on the valuation date for that quarter. The contingent coupon rate is expected to be 18.4% to 19.75% per year and will be set at pricing.

The notes will be automatically called at par if both stocks close at or above their initial share prices on any quarterly call observation date beginning in April 2019 and ending in October 2019.

The payout at maturity will be par unless either stock’s final share price is less than 65% of its initial share price, in which case investors will lose 1% for every 1% that the lesser-performing stock declines from its initial share price.

Goldman Sachs & Co. LLC is the agent.

The Cusip number is 40056EU63.

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