By Angela McDaniels
Tacoma, Wash., April 29 - Goldman Sachs Group, Inc. priced $1.79 million of 0% notes due May 2, 2016 linked to the performance of the South African rand relative to the dollar, according to a 424B2 filing with the Securities and Exchange Commission.
The issuer said that by purchasing the notes, investors are taking the view that the currency return will be positive, which means that it will take fewer rand to purchase one dollar at maturity than at pricing.
If the currency return is greater than 5%, the payout at maturity will be $1,950 per $1,000 principal amount of notes.
If the currency return is positive but less than or equal to 5%, the payout will be $1,050 per $1,000 principal amount of notes.
If the currency return is zero or negative but not less than negative 20%, the payout will be par.
If the currency return is less than negative 20%, investors will have one-to-one exposure to the decline from the initial exchange rate.
The final exchange rate will be the average of the exchange rate on the five trading days ending April 26, 2016.
Goldman Sachs & Co. is the underwriter with J.P. Morgan Securities LLC as placement agent.
| Issuer: | Goldman Sachs Group, Inc.
|
| Issue: | Currency-linked notes
|
| Underlying currency: | South African rand, measured relative to dollar
|
| Amount: | $1.79 million
|
| Maturity: | May 2, 2016
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If currency return is greater than 5%, $1,950 per $1,000 principal amount of notes; if currency return is positive but less than or equal to 5%, $1,050 per $1,000 principal amount of notes; if currency return is zero or negative but not less than negative 20%, par; if currency return is less than negative 20%, one-to-one exposure to decline from initial exchange rate
|
| Initial exchange rate: | 10.641
|
| Final exchange rate: | Average of exchange rate on five trading days ending April 26, 2016
|
| Pricing date: | April 25
|
| Settlement date: | May 2
|
| Underwriter: | Goldman Sachs & Co.
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 1.675%
|
| Cusip: | 38147Q4G8
|
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