Published on 3/8/2021 in the Prospect News Structured Products Daily.
New Issue: GS Finance increases equity-linked notes on Merck to $36.8 million
By Marisa Wong
Los Angeles, March 8 – GS Finance Corp. priced $4,421,000 of additional 0% equity-linked notes due Feb. 24, 2028 tied to the common stock of Merck & Co., Inc., according to a 424B2 filing with the Securities and Exchange Commission.
GS Finance priced the original $32 million of notes at par on Feb. 17 and an additional $379,000 at 97.34 on Feb. 24.
The second reopened notes were priced at 95.9883.
The notes are guaranteed by Goldman Sachs Group, Inc.
The payout at maturity will be the greater of 9.5236 times the closing price of the shares per each $1,000 principal amount of notes and par.
The 9.5236 exchange rate is the quotient of (i) 1,000 divided by (ii) the product of (a) 1.385 times (b) the initial share price of $75.814 (which is higher than the actual closing price of the stock on the trade date, which was $75.54).
Goldman Sachs & Co. LLC is the underwriter.
| Issuer: | GS Finance Corp.
|
| Guarantor: | Goldman Sachs Group, Inc.
|
| Issue: | Equity-linked notes
|
| Underlying stock: | Merck & Co., Inc. (NYSE: MRK)
|
| Amount: | $36.8 million (increased from $32,379,000)
|
| Maturity: | Feb. 24, 2028
|
| Coupon: | 0%
|
| Price: | Par for $32 million, 97.34 for $379,000, 95.9883 for $4,421,000
|
| Payout at maturity: | Greater of par of $1,000 and 9.5236 times the final share price
|
| Initial share price: | $75.814 (set higher than the actual closing price of the stock on the trade date, which was $75.54)
|
| Pricing date: | Feb. 17 for $32 million, Feb. 24 for $379,000, March 2 for $4,421,000
|
| Settlement date: | Feb. 24 for original notes, Feb. 26 for first reopened notes, March 4 for second reopened notes
|
| Underwriter: | Goldman Sachs & Co. LLC
|
| Fees: | 0.4% for original notes, 0.375% for first and second reopened notes
|
| Cusip: | 40057FJM7
|
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