Published on 4/26/2017 in the Prospect News Structured Products Daily.
New Issue: GS Finance prices $4.91 million contingent income autocallables on Stoxx, MSCI EAFE
By Wendy Van Sickle
Columbus, Ohio, April 26 – GS Finance Corp. priced $4.91 million of contingent income autocallable securities due April 24, 2020 linked to the lesser performing of 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.
The notes will pay a contingent quarterly coupon at an annual rate of 9.7% if each index closes at or above the 80% downside threshold level on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any call observation date beginning Oct. 23 and ending on Jan. 21, 2020.
The payout at maturity will be par of $1,000 plus the final coupon unless either index finishes below the downside threshold level, in which case investors will lose 1% for each 1% decline of the lesser-performing index.
Goldman Sachs & Co. is the underwriter with Morgan Stanley Wealth Management as a dealer.
| Issuer: | GS Finance Corp.
|
| Guarantor: | Goldman Sachs Group, Inc.
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| Issue: | Contingent income autocallable securities
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| Underlying indexes: | Euro Stoxx 50 and MSCI EAFE
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| Amount: | $4,905,000
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| Maturity: | April 24, 2020
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| Coupon: | 9.7% per year, payable quarterly if each index closes at or above downside threshold level on determination date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that final share price is less than initial share price
|
| Call: | At par plus contingent coupon if each index closes at or above initial share price on any quarterly determination date from Oct. 23 through Jan. 21, 2020
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| Initial levels: | 3,440.27 for Stoxx, 1,780.77 for MSCI EAFE
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| Downside thresholds: | 2,752.216 for Stoxx, 1,424.616 for MSCI EAFE, 80% of initial share price
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| Pricing date: | April 21
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| Settlement date: | April 26
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| Underwriter: | Goldman Sachs & Co.
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| Dealer: | Morgan Stanley Wealth Management
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| Fees: | 2.675%
|
| Cusip: | 40054L6U3
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