Published on 8/30/2021 in the Prospect News Structured Products Daily.
New Issue: GS Finance sells $10 million trigger callable contingent yield notes on tech stocks
By Taylor Fox
New York, Aug. 30 – GS Finance Corp. priced $10 million trigger callable contingent yield notes due Feb. 28, 2024 linked to the common stocks of Amazon.com, Inc. and Apple Inc., the American Depositary Shares of Alibaba Group Holding Ltd. and the class A common stocks of Alphabet Inc. and Facebook, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Goldman Sachs Group, Inc.
Each quarter, the notes will pay a contingent coupon at the rate of 27.5% per year if each stock closes at or above its coupon barrier price, 70% of the initial price, on the determination date that quarter.
The notes will be callable at par plus any coupon on any coupon payment date prior to maturity.
If the notes are not called and each stock finishes at or above 70% of its initial price, the payout at maturity will be par plus the final coupon. Otherwise, investors will lose 1% for every 1% that the least-performing stock finishes below its initial price.
Goldman Sachs & Co. LLC is the underwriter with UBS Financial Services Inc. as selling agent.
| Issuer: | GS Finance Corp.
|
| Guarantor: | Goldman Sachs Group, Inc.
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| Issue: | Trigger callable contingent yield securities
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| Underlying stocks: | Amazon.com, Inc. (Symbol: AMZN), Apple Inc. (Symbol: AAPL), Alibaba Group Holding Ltd. (Symbol: BABA), Alphabet Inc. (Symbol: GOOGL), Facebook, Inc. (Symbol: FB)
|
| Amount: | $10 million
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| Maturity: | Feb. 28, 2024
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| Coupon: | 27.5% per year, payable each quarter that each stock closes at or above its coupon barrier on determination date that quarter
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| Price: | Par of $10
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| Payout at maturity: | If each stock finishes at or above downside threshold, par; otherwise, 1% loss for every 1% that least-performing stock finishes below its initial price
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| Call option: | At par plus any coupon on any quarterly coupon payment date prior to maturity
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| Initial prices: | $3,159.53 for Amazon, $125.35 for Apple, $250.34 for Alibaba, $2,083.81 for Alphabet and $264.31 for Facebook
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| Coupon barriers: | $2,211.67 for Amazon, $87.75 for Apple, $175.24 for Alibaba, $1,458.67 for Alphabet and $185.02 for Facebook; 70% of initial prices
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| Downside thresholds: | $2,211.67 for Amazon, $87.75 for Apple, $175.24 for Alibaba, $1,458.67 for Alphabet and $185.02 for Facebook; 70% of initial prices
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| Pricing date: | Feb. 25
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| Settlement date: | March 1
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| Underwriter: | Goldman Sachs & Co. LLC with UBS Financial Services Inc. as selling agent
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| Fees: | 0.675%
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| Cusip: | 36259Y446
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