Published on 7/25/2019 in the Prospect News Structured Products Daily.
New Issue: GS Finance prices $3.6 million trigger callable contingent yield notes linked to three indexes
By Angela McDaniels
Tacoma, Wash., July 25 – GS Finance Corp. priced $3.6 million of trigger callable contingent yield notes due July 25, 2029 linked to the least performing of the Euro Stoxx 50 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at the rate of 7% per year if each index closes at or above its coupon barrier, 70% of its initial level, on the determination date for that quarter.
Beginning July 24, 2020, the notes are redeemable at par of $10 on any 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.
The notes are guaranteed by Goldman Sachs Group, Inc.
Goldman Sachs & Co. LLC is the underwriter. UBS Financial Services Inc. is acting as selling agent.
| Issuer: | GS Finance Corp.
|
| Guarantor: | Goldman Sachs Group, Inc.
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| Issue: | Trigger callable contingent yield notes
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| Underlying indexes: | Euro Stoxx 50, Russell 2000 and S&P 500
|
| Amount: | $3.6 million
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| Maturity: | July 25, 2029
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| Coupon: | 7% per year, payable quarterly if each index closes at or above its coupon bararier on determination date for that quarter
|
| 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
|
| Call option: | Beginning July 24, 2020, at par on any quarterly observation date other than final one
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| Initial levels: | 3,489.92 for Euro Stoxx 50, 1,544.783 for Russell 2000 and 2,985.03 for S&P 500
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| Coupon barriers: | 2,442.944 for Euro Stoxx 50, 1,081.348 for Russell 2000 and 2,089.521 for S&P 500, or 70% of initial levels
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| Downside thresholds: | 1,744.960 for Euro Stoxx 50, 772.392 for Russell 2000 and 1,492.515 for S&P 500, or 50% of initial levels
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| Trade date: | July 23
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| Settlement date: | July 26
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| Underwriter: | Goldman Sachs & Co. LLC
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| Selling agent: | UBS Financial Services Inc.
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| Fees: | 3.9%
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| Cusip: | 36257W426
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