GS Finance to price autocallable contingent coupon notes on S&P 500

By Wendy Van Sickle

Columbus, Ohio, Feb. 11 – GS Finance Corp. plans to price autocallable contingent coupon notes due March 9, 2026 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes are guaranteed by the Goldman Sachs Group, Inc.

The notes will pay a monthly coupon at an annual rate of 9% if the index closes at or above 75% of its initial level on the observation date for that month.

Beginning in February 2017, the notes will be automatically called at par plus the coupon due if the index closes at or above 115% of its initial level on any monthly observation date.

The payout at maturity will be par plus the contingent coupon unless the notes close below their 75% coupon level. The payout will be par if the index drops below negative 25% but not below negative 40%. Investors will be fully exposed to any decline in the index beyond 40%.

Goldman Sachs & Co. is the agent.

The notes are expected to trade on Feb. 22.

The Cusip number is 40054K3F1.

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