By Laura Lutz
Des Moines, April 9 - Goldman Sachs Group, Inc. priced $25 million of notes due April 21, 2011 linked to a weighted basket of 26 closed-end funds, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a distribution amount quarterly based on the distribution factor, a weighted sum of the distributions paid by the basket funds. For each quarter, the payout will be equal to par of $50 times the amount by which the distribution factor exceeds a basket adjustment amount, subject to a floor of 0%.
The basket adjustment amount will initially be set at 1.5% per year. For any quarter in which the distribution factor falls short of 1.5%, the next quarter's basket adjustment amount will be equal to 1.5% plus the amount of that shortfall.
Holders may put the notes at any time, subject to a minimum put amount of $2.5 million. The payout upon redemption will be par plus the difference of the basket return minus the weighted adjustment amount for the most recent quarter.
If the redemption coincides with a distribution, the payout will be reduced by the amount of that distribution.
The payout at maturity will be determined in the same way.
The funds in the basket are: Evergreen Income Advantage, Western Asset High Income II, BlackRock Limited Duration Income, Western Asset High Income Opportunity, BlackRock Corporate High Yield VI, BlackRock Corporate High Yield V, Dreyfus High Yield Strategies, Western Asset Global High Income, BlackRock Senior High Income, Western Asset Managed High Income, BlackRock Corporate High Yield III, Lehman Brothers First Trust Income Opportunity, First Trust Strategic High Income II, BlackRock Corporate High Yield, First Trust Strategic High Income, Managed High Yield Plus, Neuberger Income Opportunity, Pacholder High Yield, Credit Suisse High Yield Bond, Credit Suisse Income, DWS High Income, Van Kampen High Income II, New America High-Income, BlackRock High-Income, Prospect Street High Income, and Eaton Vance Credit Opportunities.
Goldman, Sachs & Co. is the agent.
| Issuer: | Goldman Sachs Group, Inc.
|
| Issue: | Notes
|
| Underlying basket: | 26 closed-end funds
|
| Amount: | $25 million
|
| Maturity: | April 21, 2011
|
| Coupon: | Quarterly distribution equal to par times amount by which weighed sum of distributions paid by basket funds exceeds basket adjustment amount; floor of 0%
|
| Price: | Par of $50
|
| Payout at maturity: | Par plus the difference of basket return minus weighted adjustment amount for most recent quarter
|
| Put: | At any time with minimum amount of $2.5 million; par plus difference of basket return minus weighted adjustment amount for most recent quarter, reduced by amount of simultaneous distribution, if relevant
|
| Adjustment amount: | Initially 1.5% per year; for any quarter in which distribution factor falls short of 1.5%, next quarter's adjustment amount will be equal to 1.5% plus amount of shortfall
|
| Pricing date: | April 7
|
| Settlement date: | April 21
|
| Agent: | Goldman, Sachs & Co.
|
| Fees: | 0.05%
|
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