By Devika Patel
Knoxville, Tenn., March 1 – GS Finance Corp. priced $7.16 million of contingent income autocallable securities due Feb. 27, 2020 linked to the common stock of Prudential Financial, Inc., 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 9.5% per year 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 of $10 plus the contingent coupon if the stock closes 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 lose 1% for each 1% decline.
Goldman Sachs & Co. is the underwriter.
| Issuer: | GS Finance Corp.
|
| Guarantor: | Goldman Sachs Group, Inc.
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| Issue: | Contingent income autocallable securities
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| Underlying stock: | Prudential Financial, Inc. (NYSE: PRU)
|
| Amount: | $7,162,510
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| Maturity: | Feb. 27, 2020
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| Coupon: | 9.5% per year, payable quarterly if Prudential shares close at or above downside threshold level on observation date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus final coupon; otherwise, 1% loss for every 1% that final share price is less than initial share price
|
| Call: | At par plus contingent coupon if Prudential shares close at or above initial share price on the first 11 determination dates
|
| Initial share price: | $109.96
|
| Downside threshold: | $87.968, 80% of initial share price
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| Pricing date: | Feb. 24
|
| Settlement date: | March 1
|
| Agent: | Goldman, Sachs & Co.
|
| Fees: | 2.675%
|
| Cusip: | 36251V143
|
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