GS Finance plans contingent income callable securities tied to S&P 500

By Devika Patel

Knoxville, Tenn., March 21 – GS Finance Corp. plans to price contingent income callable securities due April 6, 2026 linked to the S&P 500 index, according to an FWP filed with the Securities and Exchange Commission.

The notes are guaranteed by Goldman Sachs Group, Inc.

Each quarter, the notes will pay a contingent coupon at an annual rate of 8.5% if the index closes at or above its coupon barrier level, 75% of its initial level, on the observation date for that quarter.

The notes are callable at par of $10 on any contingent payment date between April 6, 2017 and Jan. 5, 2026.

The payout at maturity will be par plus the final coupon, if any, unless the index finishes below its 60% downside threshold level, in which case investors will be fully exposed to the decline.

Goldman Sachs & Co. is the agent.

The notes (Cusip: 36250E589) will price March 31 and settle three business days after pricing.

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