GS Finance plans 6.7% contingent income callable notes on Russell

By Sarah Lizee

Olympia, Wash., Oct. 5 – GS Finance Corp. plans to price 6.7% contingent income callable securities due Oct. 23, 2025 linked to the Russell 2000 index, according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes pay a contingent coupon at the rate of 6.7% per year if the index closes at or above its coupon threshold level, 75% of its initial level, on the determination date for that quarter.

Starting on April 24, 2019, GS Finance may call the notes at par on any quarterly coupon payment date other than the final one.

If the index finishes at or above its coupon threshold level, the payout at maturity will be par plus the final contingent coupon. If the index finishes below the coupon threshold but at or above the downside threshold level, 60% of the initial level, the payout will be par. If the final index level is less than the downside threshold level, investors will be fully exposed to the index’s decline from its initial level.

Goldman Sachs & Co. is the underwriter, with Morgan Stanley Wealth Management handling distribution.

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

The notes are expected to price on Oct. 18 and settle on Oct. 23.

The Cusip is 40056E2M9.

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