By Wendy Van Sickle
Columbus, Ohio, April 13 – GS Finance Corp. priced $5 million of callable quarterly CMS spread-linked notes due April 13, 2037, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Goldman Sachs Group, Inc.
The interest rate is 9% for the first year. After that, it will be the CMS spread minus 25 basis points then multiplied by 10, subject to a maximum interest rate of 10% per year. The CMS spread is the 30-year Constant Maturity Swap rate minus the two-year CMS rate. Interest is payable quarterly and cannot be less than zero.
The payout at maturity will be par.
Beginning April 13, 2018, the notes will be callable at par on any interest payment date.
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 quarterly CMS spread notes
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| Underlying rates: 30-year and two-year Constant Maturity Swap rates
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| Amount: | $5 million
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| Maturity: | April 13, 2037
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| Coupon: | 9% for first year; after that, 30-year CMS rate minus two-year CMS rate minus 25 basis points, then multiplied by 10, subject to maximum interest rate of 10% per year and minimum interest rate of zero; payable quarterly
|
| Price: | Par
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| Payout at maturity: | Par
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| Call option: | At par on any interest payment date from April 13, 2018 onward
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| Pricing date: | April 10
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| Settlement date: | April 13
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| Underwriter: | Goldman Sachs & Co.
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| Fees: | 3.35%
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| Cusip: | 40054L6F6
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