By Wendy Van Sickle
Columbus, Ohio, Oct. 2 – GS Finance Corp. priced $4.69 million of callable contingent coupon notes due Sept. 29, 2027 linked to the S&P 500 index and the Russell 2000 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 if each index closes at or above its barrier level, 70% of its initial level, on the observation date for that quarter. The annual rate will be 7% for the first six years, 9% for the next two years and 11% for the final two years.
Beginning in September 2018, the notes are callable at par on any coupon payment date.
If each index finishes at or above 55% of its initial level, the payout at maturity will be par plus the final coupon, if any. Otherwise, investors will lose 1% for every 1% that the lesser-performing index declines from its initial level.
Goldman Sachs & Co. is the underwriter.
| Issuer: | GS Finance Corp.
|
| Guarantor: | Goldman Sachs Group, Inc.
|
| Issue: | Callable contingent coupon notes
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| Underlying indexes: | Russell 2000 and S&P 500
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| Amount: | $4,686,000
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| Maturity: | Sept. 29, 2027
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| Coupon: | Payable quarterly at an annual rate if each index closes at or above barrier level on observation date; annual rate will be 7% for first six years, 9% for next two years and 11% for final two years
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above 55% of initial level, par plus final coupon, if any; otherwise, 1% loss for every 1% that lesser-performing index declines from initial level
|
| Call option: | Beginning in September 2018, notes are callable at par on any coupon payment date
|
| Initial levels: | 1,456.863 for Russell 2000 and 2,496.84 for S&P 500
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| Barrier levels: | 70% of initial levels
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| Pricing date: | Sept. 26
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| Settlement date: | Sept. 29
|
| Underwriter: | Goldman Sachs & Co.
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| Fees: | 4.2%
|
| Cusip: | 40054LSR6
|
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