By Marisa Wong
Morgantown, W.Va., May 20 – GS Finance Corp. priced $8.95 million of contingent income callable securities due May 23, 2017 linked to the worst performing of the S&P 500 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Goldman Sachs Group, Inc.
Each month, the notes pay a contingent coupon at an annual rate of 6% if each index closes at or above its downside threshold level, 76.25% of its initial index level, on the determination date for that month.
Beginning on Aug. 23, the notes are callable at par on any coupon payment date other than the final one.
If each index finishes at or above its downside threshold level, the payout at maturity will be par plus the final contingent coupon. If the final level of either index is less than its downside threshold level, investors will be fully exposed to the decline of the least-performing index.
Goldman Sachs & Co. is the underwriter. Morgan Stanley Wealth Management is acting as dealer.
| Issuer: | GS Finance Corp.
|
| Guarantor: | Goldman Sachs Group, Inc.
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| Issue: | Contingent income callable securities
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| Underlying indexes: | S&P 500, Dow Jones industrial average
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| Amount: | $8,945,000
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| Maturity: | May 23, 2017
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| Coupon: | 6% per year, payable monthly if each index closes at or above its downside threshold level on determination date for that month
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above downside threshold level, par plus final contingent coupon; if final level of either index is less than downside threshold level, full exposure to decline of lowest-performing index
|
| Call option: | At par on any coupon payment date beginning Aug. 23 other than final one
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| Initial index levels: | 2,047.63 for S&P 500 and 17,526.62 for the Dow
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| Downside thresholds: | 1,561.317875 for S&P 500 and 13,364.04775 for the Dow; 76.25% of initial index levels
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| Pricing date: | May 18
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| Settlement date: | May 23
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| Underwriter: | Goldman Sachs & Co.
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| Dealer: | Morgan Stanley Wealth Management
|
| Fees: | 1.15%
|
| Cusip: | 36250Y130
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