GS Finance plans callable contingent coupon notes linked to two ETFs

By Devika Patel

Knoxville, Tenn., May 15 – GS Finance Corp. plans to price callable contingent coupon notes due May 31, 2019 linked to the lesser performing of the SPDR S&P Biotech exchange-traded fund and the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

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

The notes will pay a contingent quarterly coupon at an annual rate of between 10.5% and 11.5% if each ETF closes at or above 65% of its initial level on the coupon payment date for that quarter. The exact coupon will be set at pricing.

Beginning in November 2017 and ending in February 2019, the notes are callable at par plus the contingent coupon on any coupon payment date.

The payout at maturity will be par plus the final coupon unless either ETF finishes below 65% of its initial level, in which case investors will lose 1% for each 1% loss of the worst-performing ETF from its initial level.

Goldman Sachs & Co. is the agent.

The notes (Cusip: 40054LC36) will price on May 25 and settle on May 31.

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