Published on 10/31/2018 in the Prospect News Structured Products Daily.
New Issue: GS Finance sells $95,000 autocallable contingent coupon notes on indexes
By Sarah Lizee
Olympia, Wash., Oct. 31 – GS Finance Corp. priced $95,000 of autocallable contingent coupon notes due May 4, 2020 linked to the Euro Stoxx 50 index, 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.
The notes will pay a contingent quarterly coupon of 8.7% per annum if each index closes at or above its 70% coupon trigger level on the determination date for that quarter.
Beginning in April 2019, the notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any quarterly determination date.
If each index finishes at or above its 70% coupon trigger level, the payout will be par plus the final contingent coupon.
Investors will lose 1% for each 1% decline of the lesser-performing index from its initial level if any index finishes below 70% of its initial level.
Goldman Sachs & Co. is the agent.
| Issuer: | GS Finance Corp.
|
| Guarantor: | Goldman Sachs Group, Inc.
|
| Issue: | Autocallable contingent coupon notes
|
| Underlying indexes: | Euro Stoxx 50, Russell 2000, S&P 500
|
| Amount: | $95,000
|
| Maturity: | May 4, 2020
|
| Contingent coupon: | 8.7% annualized, payable quarterly if each index closes at or above 70% coupon trigger level on the determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above coupon trigger level, par plus contingent coupon; 1% loss for each 1% decline of the lesser-performing index from its initial level if any index finishes below 70% of its initial level
|
| Call: | Automatically at par plus contingent coupon if each index closes at or above initial level on any quarterly call observation date beginning in April 2019
|
| Initial index levels: | 2,658.69 for S&P, 3,134.89 for Stoxx and 1,483.821 for Russell
|
| Trigger level: | 1,861.083 for S&P, 2,194.423 for Stoxx and 1,038.6747 for Russell; 70% of initial levels
|
| Pricing date: | Oct. 26
|
| Settlement date: | Oct. 31
|
| Agent: | Goldman Sachs & Co.
|
| Fees: | 2.525%
|
| Cusip: | 40056E2W7
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