New Issue: GS sells $9 million leveraged buffered notes on iShares MSCI EAFE ETF

By Devika Patel

Knoxville, Tenn., Jan. 30 – GS Finance Corp. priced $9 million of 0% leveraged buffered notes due Aug. 30, 2018 tied to the iShares MSCI EAFE exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

The notes are guaranteed by Goldman Sachs Group, Inc.

If the fund return is positive, the payout at maturity will be par plus 150% of the return, subject to a maximum settlement of $1,800 per $1,000 of notes. If the fund falls by up to 20%, the payout at maturity will be par. Otherwise, investors will lose 1.25% for every 1% decline beyond the 20% buffer.

Goldman, Sachs & Co. is the underwriter.

Issuer:	GS Finance Corp.
Guarantor:	Goldman Sachs Group, Inc.
Issue:	Leveraged buffered notes
Underlying ETF:	iShares MSCI EAFE exchange-traded fund
Amount:	$9 million
Maturity:	Aug. 30, 2018
Coupon:	0%
Price:	Par of $1,000
Payout at maturity:	If return is positive, par plus 150% of the gain, capped at $1,800; par if fund falls by up to 20%; 1.25% loss for every 1% decline beyond 20%
Initial level:	$59.69, which is lower than the $60.31 closing level on the trade date
Pricing date:	Jan. 25
Settlement date:	Jan. 30
Underwriter:	Goldman, Sachs & Co.
Fees:	0.15%
Cusip:	40054KUS3

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