Published on 10/23/2018 in the Prospect News Structured Products Daily.
New Issue: Goldman sells $3 million trigger callable contingent yield floaters on indexes
By Sarah Lizee
Olympia, Wash., Oct. 23 – GS Finance Corp. priced $3 million of floating-rate trigger callable contingent yield notes due Oct. 23, 2028 linked to the least performing of the Russell 2000 index, the Euro Stoxx 50 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be guaranteed by Goldman Sachs Group, Inc.
Each quarter, the notes pay a contingent coupon if each index’s closing level is at or above its coupon barrier, 50% of its initial level, on the observation date that quarter. The contingent coupon rate is Libor plus 395 basis points per year subject to a floor of zero.
After one year, the notes are callable at par of $10 on each quarterly observation date other than the final one.
If the notes are not called and each index finishes at or above its downside threshold, 50% of its initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the least-performing index’s final level is below its initial level.
Goldman Sachs & Co. is the agent with UBS Financial Services Inc. acting as distributor.
| Issuer: | GS Finance Corp.
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| Guarantor: | Goldman Sachs Group, Inc.
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| Issue: | Trigger callable contingent yield notes
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| Underlying indexes: | Russell 2000, S&P 500 and Euro Stoxx 50
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| Amount: | $3 million
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| Maturity: | Oct. 23, 2028
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| Coupon: | Libor plus 395 basis points per year, payable quarterly if each index closes at or above its downside threshold on observation date that quarter; floor of zero
|
| Price: | Par of $10
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| Payout at maturity: | If each index finishes at or above downside threshold, par; otherwise, 1% loss for every 1% that least-performing index’s final level is below initial level
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| Call option: | After one year at par on each quarterly observation date other than final one
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| Initial levels: | 2,768.78 for S&P, 1,560.752 for Russell, 3,211.59 for Stoxx
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| Coupon barriers: | 1,384.390 for S&P, 780.376 for Russell, 1,605.795 for Stoxx; 50% of initial levels
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| Downside thresholds: | 1,384.390 for S&P, 780.376 for Russell, 1,605.795 for Stoxx; 50% of initial levels
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| Pricing date: | Oct. 19
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| Settlement date: | Oct. 24
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| Agent: | Goldman Sachs & Co.
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| Distributor: | UBS Financial Services Inc.
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| Fees: | 2.4%
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| Cusip: | 36256M478
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