Published on 4/19/2017 in the Prospect News Structured Products Daily.
New Issue: GS Finance sells $3.44 million trigger autocallable contingent yield notes on MSCI EAFE, Stoxx
By Wendy Van Sickle
Columbus, Ohio, April 18 – GS Finance Corp. priced $3.44 million of trigger autocallable contingent yield notes due April 16, 2027 linked to the Euro Stoxx 50 index and the MSCI EAFE 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 an annual rate of 7.2% if each index closes at or above its coupon barrier, 70% of its initial level, on the observation date for that quarter.
Beginning in April 2018, the notes will be automatically called at par of $10 if each index closes at or above its initial level on any quarterly observation date.
The payout at maturity will be par unless either index finishes below its 50% downside threshold level, in which case investors will be fully exposed to the decline of the lesser-performing index.
Goldman Sachs & Co. is the underwriter.
| Issuer: | GS Finance Corp.
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| Guarantor: | Goldman Sachs Group, Inc.
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| Issue: | Trigger autocallable contingent yield notes
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| Underlying indexes: | MSCI EAFE index and Euro Stoxx 50 index
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| Amount: | $3,444,120
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| Maturity: | April 16, 2027
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| Coupon: | 7.2%, payable quarterly if each index closes at or above coupon barrier level on observation date
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| Price: | Par of $10
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| Call: | Beginning in April 2018, at par plus contingent coupon if each index closes at or above initial level on any quarterly observation date
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| Payout at maturity: | Par unless either index finishes below downside threshold level, in which case 1% loss for each 1% decline of the worse performing index
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| Initial levels: | 3,448.26 for Stoxx, 1,779.86 for MSCI EAFE
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| Coupon barriers: | 2,413.78 for Stoxx, 1,245.902 for MSCI EAFE, 70% of initial levels
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| Downside thresholds: | 1,724.13 for Stoxx, 889.93 for MSCI EAFE, 50% of initial levels
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| Pricing date: | April 13
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| Settlement date: | April 19
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| Agents: | Goldman Sachs & Co.
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| Fees: | 3.9%
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| Cusip: | 36251V549
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