Published on 9/19/2018 in the Prospect News Structured Products Daily.
New Issue: GS Finance prices $4.69 million floating-rate trigger callable contingent yield notes on indexes
By Wendy Van Sickle
Columbus, Ohio, Sept. 19 – GS Finance Corp. priced $4.69 million of floating-rate trigger callable contingent yield notes due Sept. 14, 2028 linked to the least performing of the Russell 2000 index, the Euro Stoxx 50 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 pay a contingent coupon if each index’s closing level is at or above its coupon barrier, 50% of its initial level, on the observation date that quarter. The contingent coupon rate is Libor plus 400 basis points per year subject to a floor of zero.
After one year, the notes are callable at par of $10 on each quarterly observation date other than the final one.
If the notes are not called and each index finishes at or above its downside threshold, 50% of its initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the least-performing index’s final level is below its initial level.
Goldman Sachs & Co. LLC is the agent with UBS Financial Services Inc. acting as distributor.
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, S&P 500 and Euro Stoxx 50
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Amount: | $4.69 million
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Maturity: | Sept. 14, 2028
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Coupon: | Libor plus 400 basis points per year, payable quarterly if each index closes at or above its downside threshold on observation date that quarter; floor of zero
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Price: | Par of $10
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Payout at maturity: | If each index finishes at or above downside threshold, par; otherwise, 1% loss for every 1% that least-performing index’s final level is below initial level
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Call option: | After one year at par on each quarterly observation date other than final one
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Initial levels: | 2,877.13 for S&P, 1,717.467 for Russell, 3,309.28 for Stoxx
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Coupon barriers: | 1,438.565 for S&P, 858.743 for Russell, 1,654.64 for Stoxx; 50% of initial levels
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Downside thresholds: | 1,438.565 for S&P, 858.743 for Russell, 1,654.64 for Stoxx; 50% of initial levels
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Pricing date: | Sept. 10
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Settlement date: | Sept. 13
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Agent: | Goldman Sachs & Co. LLC
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Distributor: | UBS Financial Services Inc.
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Fees: | 2.95%
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Cusip: | 36255U786
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