By Angela McDaniels
Tacoma, Wash., Oct. 10 - Goldman Sachs Group, Inc. priced $7 million of 0% currency-linked notes due Oct. 23, 2014 linked to the performance of the Brazilian real relative to the dollar, according to a 424B2 filing with the Securities and Exchange Commission.
The issuer said that by purchasing this note, investors are taking the view that the currency return will be positive, which means that it will take fewer reais to purchase one dollar on the determination date than on the trade date.
If the currency return is greater than 3%, the payout at maturity will be $1,300 per $1,000 principal amount of notes.
If the currency return is positive but less than or equal to 3%, the payout will be $1,050 per $1,000 principal amount of notes.
If the currency return is zero or negative but not below negative 30%, the payout will be par.
If the currency return is less than negative 30%, investors will be fully exposed to the decline.
Goldman Sachs & Co. is the underwriter with J.P. Morgan Securities LLC as placement agent.
| Issuer: | Goldman Sachs Group, Inc.
|
| Issue: | Currency-linked notes
|
| Underlying currency: | Brazilian real, measured relative to dollar
|
| Amount: | $7 million
|
| Maturity: | Oct. 23, 2014
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If currency return is greater than 3%, $1,300 per note; if currency return is positive but less than or equal to 3%, $1,050 per note; if currency return is zero or negative but not below negative 30%, par; if currency return is less than negative 30%, full exposed to decline
|
| Initial spot rate: | 2.2016 reais per dollar
|
| Pricing date: | Oct. 8
|
| Settlement date: | Oct. 16
|
| Underwriter: | Goldman Sachs & Co.
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 1.2%
|
| Cusip: | 38147QB21
|
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