Published on 4/7/2016 in the Prospect News Structured Products Daily.
New Issue: GS Finance prices $2.5 million trigger contingent yield notes linked to three indexes
By Wendy Van Sickle
Columbus, Ohio, April 7 – GS Finance Corp. priced $2.5 million trigger contingent yield notes due Nov. 15, 2018 linked to the S&P 500 index, the Euro Stoxx 50 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be guaranteed by Goldman Sachs Group, Inc.
Each quarter, the notes will pay a contingent coupon at the rate of 8% per year if each index closes or at above its trigger level, 70% of its initial level, on the observation date for that quarter.
If each index finishes at or above its trigger level, the payout at maturity will be par plus the final coupon. Otherwise, investors will lose 1% for every 1% that the least-performing index’s final level is below its initial level.
Goldman Sachs & Co. is the underwriter.
| Issuer: | GS Finance Corp.
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| Guarantor: | Goldman Sachs Group, Inc.
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| Issue: | Trigger contingent yield notes
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| Underlying indexes: | Euro Stoxx 50, Russell 2000 and S&P 500
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| Amount: | $2.5 million
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| Maturity: | Nov. 15, 2018
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| Coupon: | 8% per year, payable quarterly if each index closes at or above its trigger level on observation date during that quarter
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above trigger level, par; otherwise, 1% loss for every 1% that least-performing index’s final level is below initial level
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| Initial levels: | 2,045.17 for S&P 500, 1,095.854 for Russell 2000 and 2,890.35 for Euro Stoxx
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| Trigger levels: | 1,431.619 for S&P 500, 767.098 for Russell 2000 and 2,023.245 for Euro Stoxx, 70% of initial levels
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| Pricing date: | April 5
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| Settlement date: | April 8
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| Underwriter: | Goldman Sachs & Co.
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| Fees: | 1.175%
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| Cusip: | 36250E746
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