By Sarah Lizee
Olympia, Wash., Aug. 20 – GS Finance Corp. priced $28.9 million of contingent income callable securities due Aug. 19, 2021 linked to the Invesco S&P 500 Equal Weight ETF, according to a 424B2 with the Securities and Exchange Commission.
The notes are guaranteed by Goldman Sachs Group, Inc.
Each quarter, the notes pay a contingent coupon at the rate of 5.1% per year if the ETF closes at or above its coupon threshold level, 55% of its initial level, on the determination date for that quarter.
The notes will be callable at par on any quarterly coupon payment date.
If the ETF finishes at or above its downside threshold level, 55% of its initial level, the payout at maturity will be par plus the final contingent coupon, if any. If the final ETF level is less than the downside threshold level, investors will be fully exposed to the ETF’s decline from its initial level.
Goldman Sachs & Co. LLC is the underwriter. Morgan Stanley Wealth Management is acting as dealer.
| Issuer: | GS Finance Corp.
|
| Guarantor: | Goldman Sachs Group, Inc.
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| Issue: | Contingent income callable securities
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| Underlying ETF: | Invesco S&P 500 Equal Weight ETF
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| Amount: | $28,903,600
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| Maturity: | Aug. 19, 2021
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| Coupon: | 5.1% per year, payable each quarter that ETF closes at or above its coupon threshold level on the determination date for that quarter
|
| Price: | Par
|
| Call option: | At par on any quarterly coupon payment date
|
| Payout at maturity: | If the ETF finishes at or above its downside threshold level, par plus the final contingent coupon, if any; if the final ETF level is less than the downside threshold level, investors will be fully exposed to the ETF’s decline from its initial level
|
| Initial level: | $110.98
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| Coupon threshold: | $61.039, 55% of initial level
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| Downside threshold: | $61.039, 55% of initial level
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| Pricing date: | Aug. 14
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| Settlement date: | Aug. 19
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| Underwriter: | Goldman Sachs & Co. LLC
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| Dealer: | Morgan Stanley Wealth Management
|
| Fees: | 1.35%
|
| Cusip: | 36259L196
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