Published on 8/12/2021 in the Prospect News Structured Products Daily.
New Issue: GS Finance sells $3.77 million contingent income autocalls on three tech stocks
By William Gullotti
Buffalo, N.Y., Aug. 12 – GS Finance Corp. priced $3.77 million of contingent income autocallable securities due May 17, 2024 linked to the worst performing of the common stocks of Apple Inc., Amazon.com, Inc. and Microsoft Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Goldman Sachs Group, Inc.
The notes will pay a contingent quarterly coupon at an annual rate of 9% if the lowest performing stock closes at or above the 75% downside threshold on the related quarterly determination date.
The notes will be called at par of $10 plus the contingent coupon if the lowest performing stock closes at or above its initial price on any quarterly determination date after six months.
The payout at maturity will be par plus any final coupon unless the lowest performing stock finishes below its 65% downside threshold, in which case investors will lose 1% for each 1% share price decline of the worst performer.
Goldman Sachs & Co. LLC is the agent. Morgan Stanley Wealth Management is the dealer.
| Issuer: | GS Finance Corp.
|
| Guarantor: | Goldman Sachs Group, Inc.
|
| Issue: | Contingent income autocallable securities
|
| Underlying stocks: | Apple Inc., Amazon.com, Inc., Microsoft Corp.
|
| Amount: | $3,771,000
|
| Maturity: | May 17, 2024
|
| Coupon: | 9% per year, payable each quarter that stock closes at or above coupon threshold level on determination date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | If lowest performing stock finishes at or above downside threshold, par plus any final coupon; otherwise, full exposure to share price decline of the worst performer
|
| Call: | At par plus contingent coupon if lowest performing stock closes at or above initial price on any quarterly determination date after six months
|
| Initial share prices: | $127.45 for Apple, $3,222.90 for Amazon, $248.15 for Microsoft
|
| Coupon threshold levels: | $95.5875 for Apple, $2,417.175 for Amazon, $186.1125 for Microsoft; 75% of initial levels
|
| Downside thresholds: | $82.8425 for Apple, $2,094.885 for Amazon, $161.2975 for Microsoft; 65% of initial levels
|
| Pricing date: | May 14
|
| Settlement date: | May 19
|
| Agent: | Goldman Sachs & Co. LLC
|
| Dealer: | Morgan Stanley Wealth Management
|
| Fees: | 2.5%
|
| Cusip: | 36260W819
|
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