By Wendy Van Sickle
Columbus, Ohio, March 15 – GS Finance Corp. priced $3.86 million of contingent income autocallable securities due March 17, 2017 linked to the common stock of Bank of America Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Goldman Sachs Group, Inc.
The notes will pay a contingent quarterly coupon at an annual rate of 12% if the shares close at or above the 75% downside threshold level on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if the stock closes at or above the initial price on any of the first 11 determination dates.
The payout at maturity will be par plus the final coupon unless the shares finish below the 75% downside threshold level, in which case investors will be fully exposed to the decline.
Goldman Sachs & Co. is the agent with Morgan Stanley Wealth Management handling distribution.
| Issuer: | GS Finance Corp.
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Bank of America Corp.
|
| Amount: | $3,859,050
|
| Maturity: | March 17, 2017
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| Coupon: | 12% annualized for each quarter that stock closes at or above downside threshold level on determination date for the quarter
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus the final contingent coupon unless the shares finish below the downside threshold level, in which case full exposure to any losses
|
| Call: | At par plus contingent coupon if the shares closes at or above initial price on any determination date other than final date
|
| Initial price: | $13.79
|
| Downside threshold level: $10.3425, 75% of initial price
|
| Pricing date: | March 11
|
| Settlement date: | March 16
|
| Agent: | Goldman, Sachs & Co.
|
| Distributor: | Morgan Stanley Wealth Management
|
| Fees: | 1.85%
|
| Cusip: | 36250E498
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