By Wendy Van Sickle
Columbus, Ohio, Aug. 10 – GS Finance Corp. priced $3.98 million of contingent income autocallable securities due Aug. 10, 2017 linked to United Continental Holdings, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be guaranteed by Goldman Sachs Group, Inc.
The notes will pay a contingent quarterly coupon at an annual rate of 13.25% if the stock closes at or above its downside threshold level, 70% of its initial level, on the review date for that quarter.
The notes will be called at par if the stock closes at or above its initial level on any of the first three coupon determination dates.
The payout at maturity will be par unless United Continental shares finish below its 70% downside threshold level, in which case investors will be fully exposed to any losses.
Goldman Sachs & Co. is the underwriter. Morgan Stanley Wealth Management is the dealer.
| Issuer: | GS Finance Corp.
|
| Guarantor: | Goldman Sachs Group, Inc.
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| Issue: | Contingent income autocallable securities
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| Underlying stock: | United Continental Holdings, Inc.
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| Amount: | $3,981,840
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| Maturity: | Aug. 10, 2017
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| Coupon: | 13.25% per year, payable quarterly if United Holdings shares close at or above downside threshold level on determination date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | If stock finishes at or above downside threshold level, par plus final contingent coupon; otherwise, full exposure to any losses
|
| Call: | At par plus contingent coupon if United Holdings shares close at or above initial share price on any of the first three coupon dates
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| Initial share price: | $48.41
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| Downside threshold: | $33.887, 70% of initial share price
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| Pricing date: | Aug. 5
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| Settlement date: | Aug. 10
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| Underwriter: | Goldman Sachs & Co.
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| Dealer: | Morgan Stanley Wealth Management
|
| Fees: | 1.85%
|
| Cusip: | 36250Y478
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