By Angela McDaniels
Tacoma, Wash., Sept. 26 – Goldman Sachs Group, Inc. priced $5.1 million of leveraged notes due Oct. 2, 2017 linked to the performance of the Mexican peso relative to the euro, according to a 424B2 filing with the Securities and Exchange Commission.
The currency return will be positive if the peso strengthens relative to the euro.
If the currency return is positive or zero, the payout at maturity will be par plus five times the currency return.
If the currency return is negative but not below negative 34%, the payout will be par.
If the currency return is less than negative 34%, investors will lose 1% for every 1% that the currency return is less than zero.
The initial exchange rate set for the notes, 16.9954 pesos per euro, is lower than the actual exchange rate on the pricing date, which was 17.0195 pesos per euro. The final exchange rate will be the average of the exchange rates on each of the five trading days ending Sept. 27, 2017.
Goldman Sachs & Co. is the underwriter with J.P. Morgan Securities LLC as the placement agent.
| Issuer: | Goldman Sachs Group, Inc.
|
| Issue: | Leveraged notes
|
| Underlying currency: | Mexican peso, measured relative to euro
|
| Amount: | $5.1 million
|
| Maturity: | Oct. 2, 2017
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If currency return is positive or zero, par plus five times currency return; if currency return is negative but not below negative 34%, par; otherwise, 1% loss for every 1% that currency return is less than zero
|
| Initial exchange rate: | 16.9954 pesos per euro
|
| Final exchange rate: | Average of exchange rates on five trading days ending Sept. 27, 2017
|
| Pricing date: | Sept. 24
|
| Settlement date: | Oct. 1
|
| Underwriter: | Goldman Sachs & Co.
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 2.25%
|
| Cusip: | 38147QJ72
|
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