By Marisa Wong
Morgantown, W.Va., May 26 – GS Finance Corp. priced $1.37 million of contingent income autocallable securities due May 23, 2019 linked to the American Depository Shares of Alibaba Group Holding Ltd., 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 11.25% if the shares close at or above the 80% downside threshold level on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if the shares close 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 80% downside threshold level, in which case investors will be fully exposed to the decline.
Goldman Sachs & Co. is the underwriter. Morgan Stanley Wealth Management is acting as dealer.
| Issuer: | GS Finance Corp.
|
| Guarantor: | Goldman Sachs Group, Inc.
|
| Issue: | Contingent income autocallable securities
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| Underlying ADSs: | Alibaba Group Holding Ltd. (Symbol: BABA)
|
| Amount: | $1,369,300
|
| Maturity: | May 23, 2019
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| Coupon: | 11.25% per year, payable quarterly if Alibaba shares close at or above downside threshold level on determination date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that final share price is less than initial share price
|
| Call: | At par plus contingent coupon if Alibaba shares close at or above initial share price on any of the first 11 quarterly determination dates
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| Initial share price: | $78.79
|
| Downside threshold: | $63.032, 80% of initial share price
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| Pricing date: | May 20
|
| Settlement date: | May 25
|
| Underwriter: | Goldman Sachs & Co.
|
| Dealer: | Morgan Stanley Wealth Management
|
| Fees: | 2.675%
|
| Cusip: | 36250Y148
|
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