By Angela McDaniels
Tacoma, Wash., Oct. 3 – GS Finance Corp. priced $2.62 million of callable monthly range accrual notes due Sept. 30, 2031 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Goldman Sachs Group, Inc.
The interest rate is 7.5% per year multiplied by the proportion of days on which the index closes at or above the barrier level, 70% of the initial index level. Interest is payable monthly.
If the index return is at least negative 50%, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the index declines from its initial level.
Beginning in September, 2017, the notes will be callable at par on any interest payment date.
Goldman Sachs & Co. is the agent.
| Issuer: | GS Finance Corp.
|
| Guarantor: | Goldman Sachs Group, Inc.
|
| Issue: | Callable monthly range accrual notes
|
| Underlying index: | S&P 500
|
| Amount: | $2,621,000
|
| Maturity: | Sept. 30, 2031
|
| Coupon: | 7.5% per year multiplied by proportion of days on which index closes at or above barrier level; payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par unless index falls by more than 50%, in which case 1% loss for every 1% that index declines from initial level
|
| Call option: | At par on any interest payment date beginning in September, 2017
|
| Initial index level: | 2,171.37
|
| Barrier level: | 1,519.959, 70% of initial level
|
| Pricing date: | Sept. 28
|
| Settlement date: | Sept. 30
|
| Underwriter: | Goldman Sachs & Co.
|
| Fees: | 4.55%
|
| Cusip: | 40054KKZ8
|
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