By Devika Patel
Knoxville, Tenn., April 19 – GS Finance Corp. priced $2.83 million of contingent income autocallable securities due April 20, 2017 linked to the common stock of Gilead Sciences, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Goldman Sachs Group, Inc.
The notes will pay a contingent quarterly coupon at an annual rate of 10.7% if the shares close at or above the 80% downside threshold level on the observation date for that quarter.
The notes will be called at par of $10 plus the contingent coupon if the stock closes at or above the initial price on any of the first three determination dates.
The payout at maturity will be par plus the final coupon unless the shares finish below the 80% downside threshold level, in which case investors will be fully exposed to the decline.
Goldman Sachs & Co. is the agent with Morgan Stanley Wealth Management handling distribution.
Goldman Sachs & Co. is the underwriter with J.P. Morgan Securities LLC as placement agent.
| Issuer: | GS Finance Corp.
|
| Guarantor: | Goldman Sachs Group, Inc.
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Gilead Sciences, Inc. (Symbol: GILD)
|
| Amount: | $2,824,700
|
| Maturity: | April 20, 2017
|
| Coupon: | 10.7% per year, payable quarterly if Gilead shares close at or above downside threshold level on observation date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus final coupon; otherwise, 1% loss for every 1% that final share price is less than initial share price
|
| Call: | At par plus contingent coupon if Gilead shares close at or above initial share price on any of the first three determination dates
|
| Initial share price: | $98.29
|
| Downside threshold: | $78.632, 80% of initial share price
|
| Pricing date: | April 15
|
| Settlement date: | April 20
|
| Agent: | Goldman Sachs & Co.
|
| Distributor: | Morgan Stanley Wealth Management
|
| Fees: | 1.85%
|
| Cusip: | 36250E779
|
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