GS Finance plans to price contingent coupon autocalls tied to Alibaba

By Sarah Lizee

Olympia, Wash., May 31 – GS Finance Corp. plans to price contingent coupon autocallable notes due Sept. 14, 2020 linked to Alibaba Group Holding Ltd. stock, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 11% if the underlying stock closes at or above its 70% coupon barrier on the observation date for that period.

Starting in December, the notes will be called at par if the stock closes at or above its initial level on any quarterly observation date.

The payout at maturity will be par unless the stock closes below its 70% barrier level on any day during the life of the notes and finishes below its initial level, in which case investors will be fully exposed to the decline of the stock from its initial price.

The notes are guaranteed by Goldman Sachs Group, Inc.

Goldman Sachs & Co. LLC is the underwriter.

The notes will price on June 4.

The Cusip number is 40056FN43.

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