By Wendy Van Sickle
Columbus, Ohio, Aug. 22 – GS Finance Corp. priced $500,000 of callable contingent coupon notes due Feb. 23, 2020 linked to the SPDR S&P Biotech exchange-traded fund and the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to a 424B2 filing 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 11% if each fund closes at or above its barrier level, 50% of its initial level, on the observation day during that quarter.
Beginning in February 2018, the notes are callable at par on any coupon payment date.
If the final level of each fund is greater than or equal to 50% of its initial level, the payout at maturity will be par. Otherwise, investors will be fully exposed to the decline of the least-performing fund.
Goldman Sachs & Co. is the underwriter.
| Issuer: | GS Finance Corp.
|
| Guarantor: | Goldman Sachs Group, Inc.
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| Issue: | Callable contingent coupon notes
|
| Underliers: | SPDR S&P Biotech ETF and SPDR S&P Oil & Gas Exploration & Production ETF
|
| Amount: | $523,000
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| Maturity: | Feb. 23, 2020
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| Coupon: | 11%, payable quarterly if each fund closes at or above barrier level on observation day during that quarter
|
| Price: | Par
|
| Payout at maturity: | If final level of each fund is greater than or equal to 50% of initial level, par; otherwise, full exposure to decline of least-performing fund
|
| Call option: | Beginning in February 2018, at par on any coupon payment date
|
| Initial levels: | $74.95 for Biotech and $29.46 for Oil and Gas
|
| Barrier levels: | 50% of initial levels
|
| Pricing date: | Aug. 18
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| Settlement date: | Aug. 23
|
| Underwriter: | Goldman Sachs & Co.
|
| Fees: | 0.425%
|
| Cusip: | 40054LPM0
|
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