Goldman plans 10-year callable monthly range accrual notes on Russell

By Toni Weeks

San Luis Obispo, Calif., Feb. 4 - Goldman Sachs Group, Inc. plans to price callable monthly Russell 2000 index-linked range accrual notes due Feb. 28, 2023, according to a 424B2 filing with the Securities and Exchange Commission.

The applicable interest rate will be multiplied by the proportion of days on which the index closes at or above 75% of the initial index level. The coupon will be 8% per year for the first seven years and will step up to 9% for the final three years. Interest is payable monthly.

The payout at maturity will be par if the final index level is at least 60% of the initial level. Otherwise, investors will be fully exposed to losses from the initial index level.

The notes will be callable at par on any interest payment date beginning Feb. 28, 2014.

The notes (Cusip: 38141GND2) are expected to price Feb. 25 and settle Feb. 28.

Goldman Sachs & Co. is the underwriter.

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