GS Finance to price callable contingent interest notes tied to indexes

By Devika Patel

Knoxville, Tenn., Jan. 24 – GS Finance Corp. plans to price callable contingent interest notes due Jan. 27, 2022 linked to the worst performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing 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 rate equal to Libor plus 400 basis points if each index closes at or above its trigger value, 65% of its initial level, on the review date for that quarter.

The notes will be callable in whole but not in part at par plus the contingent coupon on any interest payment date from January 2018 until October 2021.

If the notes have not been called, the payout at maturity will be par plus the final interest payment unless either index finishes below 50% of its initial level, in which case investors will lose 1% for each 1% decline of the worst-performing index.

Goldman Sachs & Co. is the agent.

The notes (Cusip: 40054KUH7) will price on Jan. 25 and settle on Jan. 27.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.