Goldman plans four-year contingent coupon callable notes on indexes

By Susanna Moon

Chicago, May 4 – GS Finance Corp. plans to price callable contingent coupon notes due May 26, 2021 linked to the worse performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 10% to 11.7% if each index closes at or above its 55% coupon barrier on the observation date for that quarter. The exact contingent coupon will be set at pricing.

The notes are callable at par on any contingent coupon payment date from November 2017 to November 2020.

The payout at maturity will be par plus the contingent coupon unless either index finishes below its 55% trigger level, in which case investors will be fully exposed to the decline of the worse performing index.

The notes are guaranteed by Goldman Sachs Group, Inc.

Goldman Sachs & Co. is the underwriter.

The notes will price on May 19 and settle on May 26.

The Cusip number is 40054LAW4.

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