GS Finance aims to price autocallable notes tied to Russell, EAFE ETF

By Devika Patel

Knoxville, Tenn., May 29 – GS Finance Corp. plans to sell 0% autocallable notes due June 4, 2020 linked to the Russell 2000 index and the iShares MSCI EAFE 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 be called at par of $1,000 plus a 4.925% call premium for the first call date, a 9.85% call premium for the second call date and a 14.775% call premium for the third call date if each underlying closes at or above its initial level on Dec. 5, 2018, June 5, 2019 or Dec. 5, 2019.

If the notes are not called and the return of each underlying is equal to or greater than its initial level, the payout at maturity will be par plus the 19.7% maturity premium.

If the return of each underlying is less than their respective initial levels but greater than or equal to 80% of their respective initial levels, the payout will be par.

If the return of either underlying is less than negative 20%, investors will lose 1.25% for each 1% decline of the lesser-performing underlying beyond the 20% buffer.

Goldman Sachs & Co. is the agent.

The notes (Cusip: 40055QBQ4) will price on May 31 and settle June 5.

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