By Devika Patel
Knoxville, Tenn., Feb. 9 – GS Finance Corp. priced $4 million of callable contingent coupon notes due Feb. 9, 2026 linked to the worse performing of the Russell 2000 index, the S&P 500 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Goldman Sachs Group, Inc.
Each quarter, the notes pay a contingent coupon at the rate of 11.25% per year if each index closes at or above its barrier level, 50% of its initial level, on the observation date for that quarter.
The notes are callable at par of $1,000 on any contingent coupon payment date from May 9, 2016 through Nov. 9, 2025.
The payout at maturity will be par plus the final coupon payment unless any index finishes below its barrier level, in which case investors will be fully exposed to the decline of the lesser-performing index.
Goldman Sachs & Co. is the underwriter.
| Issuer: | GS Finance Corp.
|
| Issue: | Callable contingent coupon notes
|
| Underlying indexes: | Russell 2000, S&P 500 and Euro Stoxx 50
|
| Guarantor: | Goldman Sachs Group, Inc.
|
| Amount: | $4 million
|
| Maturity: | Feb. 9, 2026
|
| Coupon: | 11.25% per year, payable quarterly if each index closes at or above 50% of initial levels on determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless any index declines by more than 50%, in which case full exposure to losses of lesser-performing index
|
| Call option: | At par on any interest payment date from May 9, 2016 through Nov. 9, 2025
|
| Initial levels: | 1,010.298 for Russell 2000, 1,912.53 for S&P 500 and 2,896.63 for Euro Stoxx 50
|
| Pricing date: | Feb. 4
|
| Settlement date: | Feb. 9
|
| Underwriter: | Goldman Sachs & Co.
|
| Fees: | 1.7%
|
| Cusip: | 40054K3A2
|
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