Published on 7/1/2016 in the Prospect News Structured Products Daily.
New Issue: GS Finance prices $1.72 million callable contingent coupon notes tied to S&P, Russell
By Wendy Van Sickle
Columbus, Ohio, July 1 – GS Finance Corp. priced $1.72 million of callable contingent coupon notes due July 6, 2026 linked to the S&P 500 index and the Russell 2000 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 will pay a contingent coupon at an annual rate of 5.5% if each index closes at or above its barrier level, 50% of its initial level, on the observation date for that quarter.
The notes will be callable at par plus the coupon, if any, on any interest payment date after one year.
The payout at maturity will be par plus the final coupon, if any, unless the return of either index is less than 50%, in which case investors will be fully exposed to the decline of the worse-performing index.
Goldman Sachs & Co. is the underwriter.
| Issuer: | GS Finance Corp.
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| Guarantor: | Goldman Sachs Group, Inc.
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| Issue: | Callable contingent coupon notes
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| Underlying indexes: | Russell 2000 and S&P 500
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| Amount: | $1,722,000
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| Maturity: | July 6, 2026
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| Coupon: | 5.5%, payable quarterly if each index closes at or above 50% barrier on observation date for that quarter
|
| Price: | Par of $1,000
|
| Payout at maturity: | Par plus final coupon, if any, unless either index finishes below 50% of its initial level, in which case full exposure to decline of worse-performing index
|
| Call: | Beginning June 30, 2017, at par plus accrued interest, if any, on any quarterly coupon payment date
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| Initial levels: | 1,107.298 for Russell 2000, 2,036.09 for S&P 500
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| Barrier levels: | 50% of initial levels
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| Pricing date: | June 28
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| Settlement date: | June 30
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| Underwriter: | Goldman Sachs & Co.
|
| Fees: | 3.95%
|
| Cusip: | 40054KDQ6
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