Goldman Sachs to price index-linked notes tied to S&P 500

By Toni Weeks

San Luis Obispo, Calif., May 19 – Goldman Sachs Group, Inc. plans to price 0% notes due Nov. 30, 2016 linked to the S&P 500 index, according to a 424B2 with the Securities and Exchange Commission.

If the index return is positive, the payout at maturity will be par plus the index return, up to a maximum payout of $1,147 per $1,000 principal amount of notes.

If the index return is negative and the final index level is at least 85.3% of the initial level, the payout will be par plus the absolute value of the index return.

If the index return is negative and the final level is less than 85.3% of the initial level, investors will be fully exposed to the index decline from its initial level.

The final index level will be the average of the closing index levels on the five trading days ending Nov. 25, 2016.

The notes (Cusip: 38148T3R8) are expected to price May 22 and settle May 28.

Goldman Sachs & Co. is the underwriter. J.P. Morgan Securities LLC is the placement agent.

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