Published on 10/28/2013 in the Prospect News Structured Products Daily.
New Issue: Goldman prices $821,000 callable monthly range accrual fixed-to-floaters on Russell
By Marisa Wong
Madison, Wis., Oct. 28 - Goldman Sachs Group, Inc. priced $821,000 of callable monthly Russell 2000 index-linked fixed-to-floating range accrual notes due Oct. 29, 2028, according to a 424B2 filing with the Securities and Exchange Commission.
The coupon will be the applicable rate multiplied by the proportion of days on which the index closes at or above the trigger level, which is 75% of the initial index level. The applicable rate is 8% per year for the first 60 monthly interest payment dates. After that, the applicable rate will be Libor plus 500 basis points, subject to a floor of 0%. Interest is payable monthly.
If the final index level is greater than or equal to 50% of the initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final index level is less than the initial index level.
The notes will be callable at par on any interest payment date after one year.
Goldman Sachs & Co. is the underwriter.
| Issuer: | Goldman Sachs Group, Inc.
|
| Issue: | Callable monthly fixed-to-floating range accrual notes
|
| Underlying index: | Russell 2000
|
| Amount: | $821,000
|
| Maturity: | Oct. 29, 2028
|
| Coupon: | Applicable rate multiplied by proportion of days on which index closes at or above trigger level; applicable rate is 8% per year for first 60 months, after that, Libor plus 500 bps, subject to floor of 0%; payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par if final index level is greater than or equal to 50% of initial level; otherwise, full exposure to index's decline
|
| Call option: | Beginning Oct. 29, 2014, at par on any interest payment date
|
| Initial index level: | 1,118.85
|
| Trigger level: | 839.1375, 75% of initial level
|
| Pricing date: | Oct. 24
|
| Settlement date: | Oct. 29
|
| Underwriter: | Goldman Sachs & Co.
|
| Fees: | 4.05%
|
| Cusip: | 38147QZS8
|
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