Published on 7/26/2016 in the Prospect News Structured Products Daily.
New Issue: GS Finance prices $5.73 million contingent income callable notes linked to indexes
By Wendy Van Sickle
Columbus, Ohio, July 26 – GS Finance Corp. priced $5.73 million contingent income callable securities due July 26, 2018 linked to the least performing of the S&P 500 index, the Russell 2000 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be guaranteed by Goldman Sachs Group, Inc.
The notes will pay a contingent quarterly coupon at an annual rate of 7% if each index closes at or above its downside threshold level, 68.5% of its initial index level, on each day during that quarter.
The notes will be callable at par on any interest payment date from Oct. 27, 2016 to April 26, 2018.
The payout at maturity will be par unless any index finishes below its 68.5% downside threshold level, in which case investors will be fully exposed to any losses of the worst performing index.
Goldman Sachs & Co. is the underwriter. Morgan Stanley Wealth Management is the 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: | Russell 2000, S&P 500 and Dow Jones Industrial Average
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| Amount: | $5,732,000
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| Maturity: | July 26, 2018
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| Coupon: | 7% per year, payable quarterly if each index closes at or above its downside threshold level on each day during that quarter
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above downside threshold level, par; if final level of any index is less than downside threshold level, full exposure to decline of lowest-performing index
|
| Call option: | At par on any interest payment date from Oct. 27, 2016 to April 26, 2018
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| Initial index levels: | 18,570.85 for Dow Jones, 1,212.889 for Russell 2000 and 2,175.03 for S&P 500
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| Downside threshold: | 12,721.03225 for Dow Jones, 830.828965 for Russell 2000 and 1,489.89555 for S&P 500; 68.5% of initial index levels
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| Pricing date: | July 22
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| Settlement date: | July 27
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| Underwriter: | Goldman Sachs & Co.
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| Dealer: | Morgan Stanley Wealth Management
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| Fees: | 2.15%
|
| Cusip: | 40054KGC4
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