GS Finance plans contingent coupon autocallables tied to indexes, ETF

By Angela McDaniels

Tacoma, Wash., July 17 – GS Finance Corp. plans to price autocallable contingent coupon notes due Oct. 25, 2018 linked to the S&P 500 index, the Russell 2000 index and the SPDR Euro Stoxx 50 exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

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

Each month, the notes will pay a contingent coupon at the rate of 9.5% per year if each underlier closes at or above its trigger level, 70% of its initial level, on the observation date for that month.

Beginning in January 2018, the notes will be automatically called at par if each underlier closes at or above its initial level on any coupon determination date.

A trigger event will occur if any underlier closes below its trigger level on any day during the life of the notes.

The payout at maturity will be par unless a trigger event occurs and the final return of one or more underliers is negative, in which case investors will be fully exposed to the decline of the least-performing underlier from its initial level.

Goldman Sachs & Co. is the underwriter.

The notes will price July 19.

The Cusip number is 40054LKX1.

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