Published on 12/2/2016 in the Prospect News Structured Products Daily.
New Issue: GS Finance sells $2.32 million callable contingent coupon notes on S&P, Russell
By Devika Patel
Knoxville, Tenn., Dec. 2 – GS Finance Corp. priced $2.32 million of callable contingent coupon notes due Nov. 30, 2026 linked to the worse performing of the Russell 2000 index and 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.
Each quarter, the notes pay a contingent coupon at the rate of 8% per year if each index closes at or above its barrier level, 70% of its initial level, on the observation date for that quarter.
The notes are callable at par of $1,000 on any contingent coupon payment date from Nov. 30, 2017 through Aug. 30, 2026.
The payout at maturity will be par plus the final coupon payment, if any, unless either index finishes below 50% of its initial level, in which case investors will lose 1% for each 1% decline of the lesser-performing index from its initial level.
Goldman Sachs & Co. is the underwriter.
| Issuer: | GS Finance Corp.
|
| Issue: | Callable contingent coupon notes
|
| Underlying indexes: | Russell 2000 and S&P 500
|
| Guarantor: | Goldman Sachs Group, Inc.
|
| Amount: | $2,317,000
|
| Maturity: | Nov. 30, 2026
|
| Coupon: | 8% per year, payable quarter if each index closes at or above 70% of initial level on determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par plus final coupon, if any, unless either index declines by more than 50%, in which case 1% loss for each 1% decline of lesser-performing index from initial level
|
| Call option: | At par on any interest payment date from Nov. 30, 2017 through Aug. 30, 2026
|
| Initial levels: | 1,329.828 for Russell 2000 and 2,201.72 for S&P 500
|
| Coupon barriers: | 930.880 for Russell 2000 and 1,541.204 for S&P 500; 70% of initial levels
|
| Pricing date: | Nov. 28
|
| Settlement date: | Nov. 30
|
| Underwriter: | Goldman, Sachs & Co.
|
| Fees: | 4.45%
|
| Cusip: | 40054KNJ1
|
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