By Sarah Lizee
Olympia, Wash., Feb. 21 – GS Finance Corp. priced $1.97 million of callable contingent coupon notes due Feb. 22, 2022 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.
The notes pay a contingent semiannual coupon if each fund closes at or above 75% of its initial level on the observation date. The interest rate will be the product of 7.75% times the number of coupon observation dates that have occurred up to and including the relevant coupon observation date minus the sum of all coupons previously paid, if any.
The notes are callable at par on any coupon payment date.
If each fund finishes at or above 70% of its initial level, the payout at maturity will be par.
Otherwise, the payout will be par plus the return of the lesser-performing fund with full exposure to losses.
Goldman Sachs & Co. is the underwriter.
| Issuer: | GS Finance Corp.
|
| Guarantor: | Goldman Sachs Group, Inc.
|
| Issue: | Callable contingent coupon notes
|
| Underlying funds: | SPDR S&P Biotech ETF and SPDR S&P Oil & Gas Exploration & Production ETF
|
| Amount: | $1,965,000
|
| Maturity: | Feb. 22, 2022
|
| Coupon: | 7.75% times the number of coupon observation dates that have occurred up to and including the relevant coupon observation date minus the sum of all coupons previously paid, if any; payable if each fund closes at or above 75% of its initial level on the observation date
|
| Price: | Par
|
| Payout at maturity: | Par plus final coupon if each fund finishes at or above 70% of its initial level; otherwise par plus the return of the lesser-performing fund with full exposure to losses
|
| Call option: | At par on any coupon payment date
|
| Initial levels: | $86.59 for biotech fund, $31.00 for oil and gas fund
|
| Pricing date: | Feb. 15
|
| Settlement date: | Feb. 22
|
| Underwriter: | Goldman Sachs & Co.
|
| Fees: | 0.25%
|
| Cusip: | 40056EXE3
|
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