Published on 11/12/2018 in the Prospect News Structured Products Daily.
New Issue: Goldman sells $3 million trigger callable contingent yield notes on indexes
By Wendy Van Sickle
Columbus, Ohio, Nov. 12 – GS Finance Corp. priced $3 million of trigger callable contingent yield notes due May 6, 2024 linked to the least performing of the Russell 2000 index, the MSCI EAFE index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be guaranteed by Goldman Sachs Group, Inc.
Each quarter, the notes pay a contingent coupon at an annualized rate of 9.35% if each index’s closing level is at or above its coupon barrier, 70% of its initial level, on the observation date that quarter.
The notes are callable at par of $10 on each quarterly observation date other than the final one.
If the notes are not called and each index finishes at or above its downside threshold, 60% of its initial level, the payout at maturity will be par plus any coupon. Otherwise, investors will lose 1% for every 1% that the least-performing index’s final level is below its initial level.
Goldman Sachs & Co. is the agent with UBS Financial Services Inc. acting as distributor.
Issuer: | GS Finance Corp.
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Guarantor: | Goldman Sachs Group, Inc.
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Issue: | Trigger callable contingent yield notes
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Underlying indexes: | Russell 2000, S&P 500 and MSCI EAFE
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Amount: | $3 million
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Maturity: | May 6 2024
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Coupon: | 9.35%, payable quarterly if each index closes at or above its downside threshold on observation date that quarter
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Price: | Par of $10
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Payout at maturity: | If each index finishes at or above downside threshold, par plus coupon, if any; otherwise, 1% loss for every 1% that least-performing index’s final level is below initial level
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Call option: | At par on each quarterly observation date other than final one
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Initial levels: | 2,711.74 for S&P, 1,511.413 for Russell, 1,815.17 for MSCI EAFE
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Coupon barriers: | 1,898.218 for S&P, 1,057.989 for Russell, 1,270.619 for MSCI EAFE; 70% of initial levels
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Downside thresholds: | 1,627.044 for S&P, 906.848 for Russell, 1,089.102 for MSCI EAFE; 60% of initial levels
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Pricing date: | Oct. 31
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Settlement date: | Nov. 5
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Agent: | Goldman Sachs & Co.
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Distributor: | UBS Financial Services Inc.
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Fees: | 2.35%
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Cusip: | 36256M536
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