Published on 3/16/2016 in the Prospect News Structured Products Daily.
New Issue: GS Finance prices $7.24 million contingent income callable notes linked to indexes
By Wendy Van Sickle
Columbus, Ohio, March 16 – GS Finance Corp. priced $7.24 million of contingent income callable securities due March 19, 2018 linked to the worst performing of the Russell 2000 index, the Euro Stoxx 50 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 9.25% if each index closes at or above its downside threshold level, 65% of its initial index level, on the determination date for that quarter.
The notes are callable at par on any quarterly determination date other than the final one.
If each index finishes at or above its downside threshold level, the payout at maturity will be par plus the final contingent coupon. If the final level of any index is less than its downside threshold level, investors will be fully exposed to the decline of the least-performing index.
The notes are guaranteed by Goldman Sachs Group, Inc.
Goldman, Sachs & Co. is the agent. Distribution is through Morgan Stanley Wealth Management.
Issuer: | GS Finance Corp.
|
Issue: | Contingent income callable securities
|
Underlying indexes: | Euro Stoxx 50, Russell 2000 and S&P 500
|
Amount: | $7,244,000
|
Maturity: | March 19, 2018
|
Coupon: | 9.25% per year, payable quarterly if each index closes at or above its downside threshold level on determination date for that quarter
|
Price: | Par
|
Payout at maturity: | If each index finishes at or above downside threshold level, par plus final contingent coupon; if final level of any index is less than downside threshold level, full exposure to decline of lowest-performing index
|
Call option: | At par on any quarterly determination date other than final one
|
Initial index levels: | 3,091.98 for Euro Stoxx 50 (closing level on Feb. 22), 2,019.64 for S&P 500 and 1,084.25 for Russell 2000
|
Downside threshold: | 2,009.787 for Euro Stoxx 50, 1,312.766 for S&P 500 and 704.7625 for Russell 2000; 65% of initial index levels
|
Pricing date: | March 14
|
Settlement date: | March 17
|
Agent: | Goldman, Sachs & Co.
|
Distribution: | Morgan Stanley Wealth Management
|
Fees: | 2.175%
|
Cusip: | 40054K6B7
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.