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

By Devika Patel

Knoxville, Tenn., Dec. 29 – GS Finance Corp. plans to price contingent income callable securities due Jan. 19, 2027 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% 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, in whole but not in part, at par plus any coupon on any quarterly coupon payment dates from Jan. 19, 2018 until Oct. 16, 2026.

The payout at maturity will be par plus the final coupon, if any, unless the index finishes below the 75% coupon barrier level but above its 60% downside threshold level. If the index finishes below its 60% downside threshold level, investors will lose 1% for each 1% decline.

Goldman Sachs & Co. is the agent.

The notes (Cusip: 40054KSL1) will price on Jan. 13 and settle three business days after pricing.

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