Published on 8/31/2016 in the Prospect News Structured Products Daily.
New Issue: GS Finance prices $770,000 callable contingent coupon notes on three indexes
By Wendy Van Sickle
Columbus, Ohio, Aug. 31 – GS Finance Corp. priced $770,000 of callable contingent coupon notes due March 1, 2018 linked to the Euro Stoxx 50 index, the Russell 2000 index and the S&P 500 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 an annual rate of 8% if each index closes at or above its barrier level, 70% of its initial level, on the observation date for that quarter.
The notes will be callable at par plus the coupon, if any, on any interest payment date.
If the return of each index is greater than or equal to negative 30%, the payout at maturity will be par plus the final coupon. Otherwise, investors will be fully exposed to the decline of the worst-performing index.
Goldman Sachs & Co. is the underwriter.
| Issuer: | GS Finance Corp.
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| Guarantor: | Goldman Sachs Group, Inc.
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| Issue: | Callable contingent coupon notes
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| Underlying indexes: | Euro Stoxx 50, Russell 2000 and S&P 500
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| Amount: | $770,000
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| Maturity: | March 1, 2018
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| Coupon: | 8% per year, payable quarterly if each index closes at or above barrier level on quarterly observation date
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| Price: | Par of $10
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| Payout at maturity: | If each index finishes at or above barrier level, par; otherwise, 1% loss for every 1% that least-performing index’s final level is below initial level
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| Call option: | At par on any interest payment date
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| Initial levels: | 1,238.031 for Russell, 2,169.04 for S&P and 3,010.36 for Stoxx
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| Barrier levels: | 70% of initial levels
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| Pricing date: | Aug. 26
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| Settlement date: | Aug. 31
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| Agent: | Goldman Sachs & Co.
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| Fees: | 0.15%
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| Cusip: | 40054KH66
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