By Toni Weeks
San Luis Obispo, Calif., Nov. 20 – Goldman Sachs Group, Inc. priced $2.5 million of 0% leveraged currency-linked notes due Nov. 20, 2017 tied to the dollar relative to the euro, according to a 424B2 filing with the Securities and Exchange Commission.
The currency return will be positive if the final exchange rate is less than the initial exchange rate, which means it will take fewer dollars to purchase one euro at the final exchange rate, compared to the initial rate of 1.24565 dollars per euro.
The payout at maturity will be par plus 4.05 times any currency gain, up to a maximum payout of $1,405 per $1,000 principal amount of notes. Investors will share in losses if the currency return is negative, with a minimum payout of zero.
The final exchange rate will be the average of the exchange rates on the five trading days ending Nov. 15, 2017.
Goldman Sachs & Co. is the underwriter. J.P. Morgan Securities LLC is the placement agent.
| Issuer: | Goldman Sachs Group, Inc.
|
| Issue: | Leveraged currency-linked notes
|
| Underlying currency: | Dollar relative to euro
|
| Amount: | $2.5 million
|
| Maturity: | Nov. 20, 2017
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If currency return is positive, par plus 4.05 times the currency return, capped at payout of $1,405 per $1,000 principal amount; if currency return is negative, exposure to losses with floor of zero
|
| Initial rate: | 1.24565
|
| Pricing date: | Nov. 17
|
| Settlement date: | Nov. 24
|
| Underwriter: | Goldman Sachs & Co.
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 1.675%
|
| Cusip: | 38147QMY9
|
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