By Kiku Steinfeld
Chicago, June 30 – GS Finance Corp. priced $2.38 million of 0% index-linked notes due July 19, 2021 tied to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Goldman Sachs Group, Inc.
A trigger event occurs if the index declines by more than 17% on any trading day during the life of the notes.
If a trigger event does not occur and the final index level is equal or greater to its initial level, the payout will be par.
If the index has never fallen by more than 17% and the final index level is lower than its initial level, investors will receive par plus the absolute value of the index return.
If a trigger event has occurred, meaning the index has dropped more than 17% during the life of the notes, and the final level is equal to or greater than the 83% trigger level, investors will receive par plus 1.2048 times the underlier return plus 17%. This means that if the index return is above 83% of its initial level, the investor return will be positive.
If the index has fallen below 83% of its initial level at any point during the life of the notes and finishes below 83% of its initial level, the payout will similarly be par plus 1.2048 times the index return plus 17%. However, in this instance investors will lose part of their investment.
Goldman Sachs & Co. LLC is the underwriter.
| Issuer: | GS Finance Corp.
|
| Guarantor: | Goldman Sachs Group, Inc.
|
| Issue: | Index-linked notes
|
| Underlying index: | S&P 500
|
| Amount: | $2,380,000
|
| Maturity: | July 19, 2021
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Index never falls below 83% of initial level – finishes flat or positive, payout of par, finishes between 83% of initial level but negative par plus absolute value of return; index closes below 83% of initial level during the life of the notes – par plus 1.2048 times the underlier return plus 17%
|
| Initial level: | 3,066.59
|
| Trigger buffer: | 83% of initial level on every trading day during the life of the notes
|
| Pricing date: | June 15
|
| Settlement date: | June 22
|
| Underwriter: | Goldman Sachs & Co. LLC
|
| Fees: | 0.92%
|
| Cusip: | 40057CA50
|
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