Published on 2/21/2017 in the Prospect News Structured Products Daily.
New Issue: GS Finance prices $500,000 callable contingent coupon notes linked to S&P, Russell, EAFE ETF
By Angela McDaniels
Tacoma, Wash., Feb. 21 – GS Finance Corp. priced $500,000 of callable contingent coupon notes due Feb. 21, 2019 linked to the S&P 500 index, the Russell 2000 index and the iShares MSCI EAFE exchange-traded fund, 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 8.1% if each underlier closes at or above its barrier level, 70% of its initial level, on the observation date for that quarter.
If the final level of each underlier is greater than or equal to its barrier level, the payout at maturity will be par plus the final coupon. Otherwise, investors will lose 1% for every 1% that the least-performing underlier declines from its initial level.
Beginning August 2017, the notes will be callable at par on any coupon payment date.
Goldman Sachs & Co. is the underwriter.
| Issuer: | GS Finance Corp.
|
| Guarantor: | Goldman Sachs Group, Inc.
|
| Issue: | Callable contingent coupon notes
|
| Underliers: | Russell 2000 index, S&P 500 index and iShares MSCI EAFE ETF
|
| Amount: | $500,000
|
| Maturity: | Feb. 21, 2019
|
| Coupon: | 8.1%, payable quarterly if each underlier closes at or above barrier level on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If final level of each underlier is greater than or equal to its barrier level, par plus final coupon; otherwise, 1% loss for every 1% that least-performing underlier declines from initial level
|
| Call option: | At par on any coupon payment date from August 2017 onward
|
| Initial levels: | 2,349.25 for S&P 500, 1,404.207 for Russell 2000 and $60.52 for ETF
|
| Barrier levels: | 1,644.475 for S&P 500, 982.945 for Russell 2000 and $42.364 for ETF, or 70% of initial levels
|
| Pricing date: | Feb. 15
|
| Settlement date: | Feb. 21
|
| Underwriter: | Goldman Sachs & Co.
|
| Fees: | 2.425%
|
| Cusip: | 40054KWU6
|
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