By Angela McDaniels
Tacoma, Wash., Sept. 28 – GS Finance Corp. priced $4.07 million of callable contingent coupon notes due Sept. 29, 2021 linked to the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Goldman Sachs Group, Inc.
Each month, the notes pay a contingent coupon at an annual rate of 5% if each index closes at or above its barrier level, 60% of its initial level, on the observation date for that month.
Beginning in September 2018, the notes are callable at par on any coupon payment date.
If each index finishes at or above its barrier level, the payout at maturity will be par plus the final coupon. If either index finishes below its barrier level, investors will lose 1% for every 1% that the lesser-performing index declines from its initial level.
Goldman Sachs & Co. is the underwriter.
| Issuer: | GS Finance Corp.
|
| Guarantor: | Goldman Sachs Group, Inc.
|
| Issue: | Callable contingent coupon notes
|
| Underlying indexes: | Russell 2000 and S&P 500
|
| Amount: | $4,066,000
|
| Maturity: | Sept. 29, 2021
|
| Coupon: | 5%, payable monthly if each index closes at or above barrier level on observation date for that month
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above barrier level, par plus final coupon; if either index finishes below barrier level, 1% loss for every 1% that lesser-performing index declines from initial level
|
| Call option: | Beginning in September 2018, notes are callable at par on any coupon payment date
|
| Initial levels: | 1,456.863 for Russell 2000 and 2,496.84 for S&P 500
|
| Barrier levels: | 60% of initial levels
|
| Pricing date: | Sept. 26
|
| Settlement date: | Sept. 29
|
| Underwriter: | Goldman Sachs & Co.
|
| Fees: | 4.05%
|
| Cusip: | 40054LRY2
|
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