Published on 8/25/2017 in the Prospect News Structured Products Daily.
New Issue: GS Finance prices $13.68 million callable contingent coupon notes linked to indexes, ETF
By Wendy Van Sickle
Columbus, Ohio, Aug. 25 – GS Finance Corp. priced $13.68 million of callable contingent coupon notes due Aug. 27, 2021 linked to the S&P 500 index, the Russell 2000 index and the iShares MSCI EAFE ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Goldman Sachs Group, Inc.
Each quarter, the notes pay a contingent coupon at an annual rate of 9.35% if each asset closes at or above its barrier level, 80% of its initial level, on each trading day that period.
The notes are callable at par on any coupon payment date from February 2018 to May 2021.
The payout at maturity will be par plus the final coupon, if any, unless any asset closes below 60% of its initial level, in which case investors will be fully exposed to the loss of the least-performing asset.
Goldman Sachs & Co. is the underwriter.
| Issuer: | GS Finance Corp.
|
| Guarantor: | Goldman Sachs Group, Inc.
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| Issue: | Callable contingent coupon notes
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| Underlying assets: | Russell 2000, S&P 500, iShares MSCI EAFE ETF
|
| Amount: | $13,675,000
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| Maturity: | Aug. 27, 2021
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| Coupon: | 9.35%, payable quarterly if each asset closes at or above barrier level on each trading day that period
|
| Price: | Par
|
| Payout at maturity: | Par plus final coupon, if any, unless any asset finishes below 60% of initial level, in which case full exposure to loss of lesser performing index
|
| Call option: | At par on any coupon payment date from February 2018 to May 2021
|
| Initial levels: | 1,369.739 for Russell 2000, 2,444.04 for S&P 500, $66.50 for ETF
|
| Barrier levels: | 1,095.791 for Russell 2000, 1,955.232 for S&P 500, $53.20 for ETF; 80% of initial levels
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| Pricing date: | Aug. 23
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| Settlement date: | Aug. 28
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| Underwriter: | Goldman Sachs & Co.
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| Fees: | 2.5%
|
| Cusip: | 40054LPG3
|
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