GS Finance plans contingent coupon autocallables linked to oil index

By Angela McDaniels

Tacoma, Wash., March 1 – GS Finance Corp. plans to price autocallable contingent coupon notes due March 9, 2021 linked to the S&P GSCI Crude Oil Index Excess Return, 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 at the rate of 8.25% per year if the index’s closing level is greater than or equal to 50% of its initial level on the determination date for that quarter.

Beginning in March 2017, the notes will be automatically called at par plus the contingent coupon if the index closes at or above its initial level on any quarterly determination date.

If the notes have not been called and the index return is greater than or equal to negative 50%, the payout maturity will be par plus the contingent coupon. If the index return is less than negative 50%, investors will be fully exposed to the decline of the index.

Goldman Sachs & Co. is the underwriter.

The notes are expected to price March 2.

The Cusip number is 40054K4C7.

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