By Marisa Wong
Los Angeles, Sept. 1 – GS Finance Corp. priced $3.33 million of 0% bearish barrier market-linked notes (with daily barrier observation) due Aug. 30, 2023 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Goldman Sachs Group, Inc.
A barrier event will occur if the index closes below the lower barrier on any day during the life of the notes. The lower barrier is equal to the initial level minus 20% of the initial level.
If a barrier event has occurred, the payout at maturity will be $1,065 for each $1,000 of notes.
If a barrier event has not occurred, the payout will be (i) par if the index finishes at or above its initial level or (ii) par plus the absolute value of the index return if the index finishes below the initial level. Due to the lower barrier, the maximum return on the notes will be 20%.
The issuer explained that by purchasing the note, investors are taking the bearish view that the final index level will be less than the initial index level by more than 6.5%, but not by more than 20%, and that the closing level of the index will never be less than the lower barrier during the life of the notes. If a barrier event has not occurred, at maturity the return on the notes may be zero and will not be more than 20%.
Goldman Sachs & Co. LLC is the agent with UBS Financial Services Inc. as selling agent.
| Issuer: | GS Finance Corp.
|
| Guarantor: | Goldman Sachs Group, Inc.
|
| Issue: | Bearish barrier market-linked notes (with daily barrier observation)
|
| Underlying index: | Russell 2000 index
|
| Amount: | $3,329,000
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| Maturity: | Aug. 30, 2023
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| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If index closes below lower barrier on any day during life of notes, par plus 6.5%; otherwise, (i) par if index finishes at or above its initial level or (ii) par plus absolute value of index return if index finishes below initial level, with return capped at 20%
|
| Initial index level: | 1,899.830
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| Lower barrier: | Initial index level minus 20% of the initial index level
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| Pricing date: | Aug. 26
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| Settlement date: | Aug. 31
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| Agent: | Goldman Sachs & Co. LLC with UBS Financial Services Inc. as selling agent
|
| Fees: | 1%
|
| Cusip: | 40057MWZ8
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