Published on 9/19/2018 in the Prospect News Structured Products Daily.
New Issue: GS Finance prices $2.5 million trigger callable contingent yield notes on three indexes
By Wendy Van Sickle
Columbus, Ohio, Sept. 19 – GS Finance Corp. priced $2.5 million of 0% trigger callable contingent yield notes due Sept. 12, 2028 linked to the Russell 2000 index, the MSCI Emerging Markets index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be guaranteed by Goldman Sachs Group, Inc.
The notes will pay a contingent quarterly coupon at an annual rate of 11.75% if each index closes at or above its coupon barrier, 70% of its initial level, on the observation date that quarter.
The notes will be callable at par plus any coupon due on any quarterly observation date.
The payout at maturity will be par plus the final coupon, if any, unless any index finishes below the downside threshold level, 50% of its initial level, in which case investors will lose 1% for every 1% loss of the worst performing index from its initial level.
Goldman Sachs & Co. is the agent with UBS Financial Services Inc. as selling agent.
| Issuer: | GS Finance Corp.
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| Guarantor: | Goldman Sachs Group, Inc.
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| Issue: | Trigger callable contingent yield notes
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| Underlying indexes: | Russell 2000, Euro Stoxx 50 and MSCI Emerging Markets
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| Amount: | $2.5 million
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| Maturity: | Sept. 12, 2028
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| Coupon: | 11.75%, payable quarterly if each index closes at or above coupon barrier on observation date that quarter
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| Price: | Par of $10
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| Call option: | At par plus any coupon on any quarterly observation date
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| Payout at maturity: | Par plus final coupon, if any, unless any index closes below downside threshold level, in which case will lose 1% for each 1% decline of the worst performing index from initial level
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| Initial levels: | 3,293.36 for Stoxx, 1,713.18 for Russell, 1,022.98 for MSCI EM
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| Coupon barriers: | 2,305.352 for Stoxx, 1,713.18 for Russell, 716.086 for MSCI EM; 70% of initial levels
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| Downside thresholds: | 1,646.68 for Stoxx, 856.59 for Russell, 511.49 for MSCI EM, 50% of initial levels
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| Pricing date: | Sept. 7
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| Settlement date: | Sept. 12
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| Agent: | Goldman Sachs & Co. with UBS Financial Services Inc. as selling agent
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| Fees: | 1.65%
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| Cusip: | 36255U828
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