GS Finance plans callable monthly range accrual notes tied to Russell

By Angela McDaniels

Tacoma, Wash., Sept. 27 – GS Finance Corp. plans to price callable monthly range accrual notes due Sept. 30, 2031 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

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

The interest rate will be the interest factor multiplied by the proportion of days on which the index closes at or above the barrier level, 70% of the initial index level. The interest factor is expected to be 7.5% to 8% per year and will be set at pricing. Interest will be payable monthly.

Beginning Sept. 30, 2017, the notes will be callable at par on any interest payment date.

If the notes are not called and the index return is greater than or equal to negative 50%, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final index level is less than the initial index level.

Goldman Sachs & Co. is the agent.

The notes will price Sept. 28.

The Cusip number is 40054KKZ8.

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