Published on 3/22/2017 in the Prospect News Structured Products Daily.
New Issue: GS Finance prices $28.69 million contingent income callable notes tied to S&P 500
By Marisa Wong
Morgantown, W.Va., March 22 – GS Finance Corp. priced $28.69 million of contingent income callable securities due March 22, 2027 linked to the S&P 500 index, according to a 424B2 filed with the Securities and Exchange Commission.
The notes are guaranteed by Goldman Sachs Group, Inc.
Each quarter, the notes will pay a contingent coupon at an annual rate of 7.65% if the index closes at or above its coupon barrier level, 75% of its initial level, on the observation date for that quarter.
The notes are callable, in whole but not in part, at par plus any coupon due on any quarterly coupon payment date from March 22, 2018 until Dec. 22, 2026.
The payout at maturity will be par plus the final coupon, if any, unless the index finishes below the 60% downside threshold level, in which case investors will lose 1% for each 1% decline.
Goldman Sachs & Co. is the underwriter with Morgan Stanley Wealth Management as dealer.
| Issuer: | GS Finance Corp.
|
| Guarantor: | Goldman Sachs Group, Inc.
|
| Issue: | Contingent income callable securities
|
| Underlying index: | S&P 500 index
|
| Amount: | $28,691,000
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| Maturity: | March 22, 2027
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| Coupon: | 7.65% per year, payable each quarter that index closes at or above its coupon barrier level on the observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par plus the final coupon, if any, unless the index finishes below the downside threshold level, in which case investors will lose 1% for each 1% decline
|
| Call option: | In whole but not in part at par plus any coupon due on any quarterly coupon payment date from March 22, 2018 until Dec. 22, 2026
|
| Initial index level: | 2,378.25
|
| Coupon barrier: | 1,783.6875, 75% of initial level
|
| Downside threshold: | 1,426.95, 60% of initial level
|
| Pricing date: | March 17
|
| Settlement date: | March 22
|
| Underwriter: | Goldman, Sachs & Co.
|
| Dealer: | Morgan Stanley Wealth Management
|
| Fees: | 3.95%
|
| Cusip: | 40054KYP5
|
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