GS Finance plans contingent income autocallables linked to Broadcom

By Tali Rackner

Norfolk, Va., July 22 – GS Finance Corp. plans to price contingent income autocallable securities due Aug. 3, 2017 linked to the ordinary shares of Broadcom Ltd., according to an FWP filing with the Securities and Exchange Commission.

The notes will be guaranteed by Goldman Sachs Group, Inc.

If Broadcom shares close at or above the downside threshold level, 70% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 10%.

The notes will be called at par of $10 plus the contingent coupon if Broadcom shares close at or above the initial share price on any quarterly determination date other than the final determination date.

If the final share price is greater than or equal to the 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. Morgan Stanley Wealth Management is acting as dealer.

The notes are expected to price July 29.

The Cusip number is 36250Y411.

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