Published on 10/10/2017 in the Prospect News Structured Products Daily.
New Issue: GS Finance prices $935,000 callable contingent coupon notes on Nasdaq, Russell
By Wendy Van Sickle
Columbus, Ohio, Oct. 10 – GS Finance Corp. priced $935,000 of callable contingent coupon notes due April 4, 2022 linked to the Nasdaq-100 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 quarter, the notes pay a contingent coupon at an annual rate of 8.55% if each index’s closing level is greater than or equal to 80% of its initial level on the observation date for that quarter.
Beginning in October 2018, the notes are callable at par on any coupon payment date.
If each index’s final level is at least 80% of its initial level, the payout at maturity will be par plus the final coupon. If either index declines by more than 20%, investors will lose 1% for every 1% that the lesser-performing index declines beyond 20%.
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 indexes: | Russell 2000 and Nasdaq-100
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| Amount: | $935,000
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| Maturity: | April 4, 2022
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| Coupon: | 8.55%, payable quarterly if each index’s closing level is greater than or equal to 80% of initial level on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If each index’s final level is at least 80% of initial level, par plus final coupon; if either index declines by more than 20%, 1% loss for every 1% that lesser-performing index declines beyond 20%
|
| Call option: | Beginning in October 2018, notes are callable at par on any coupon payment date
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| Initial levels: | 1,490.861 for Russell 2000 and 5,979.298 for Nasdaq-100
|
| Barrier levels: | 1,192.6888 for Russell, 4,783.4384 for Nasdaq-100; 80% of initial levels
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| Pricing date: | Sept. 29
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| Settlement date: | Oct. 4
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| Underwriter: | Goldman Sachs & Co.
|
| Fees: | 1.4%
|
| Cusip: | 40054LTT1
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