By Wendy Van Sickle
Columbus, Ohio, Nov. 8 – GS Finance Corp. priced $414,000 of callable contingent coupon notes due Feb. 3, 2019 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.
Each quarter, the notes pay a contingent coupon at an annual rate of 11.5% if each ETF closes at or above its barrier level, 70% of its initial share price, on the observation date for that quarter.
Beginning in May 2018, the notes are callable at par on any coupon payment date.
If each ETF finishes at or above its barrier level, the payout at maturity will be par plus the final coupon. If either ETF finishes below its barrier level, investors will lose 1% for every 1% that the lesser-performing ETF declines from its initial share price.
Goldman Sachs & Co. is the underwriter.
| Issuer: | GS Finance Corp.
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| Guarantor: | Goldman Sachs Group, Inc.
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| Issue: | Callable contingent coupon notes
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| Underlying ETFs: | SPDR S&P Biotech ETF and SPDR S&P Oil & Gas Exploration & Production ETF
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| Amount: | $414,000
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| Maturity: | Feb. 3, 2019
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| Coupon: | 11.5%, payable quarterly if each ETF closes at or above barrier level on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | If each ETF finishes at or above barrier level, par plus final coupon; if either ETF finishes below barrier level, 1% loss for every 1% that lesser-performing ETF declines from initial share price
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| Call option: | Beginning in May 2018, notes are callable at par on any coupon payment date
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| Initial share prices: | $83.64 for biotech ETF and $34.28 for oil ETF
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| Barrier levels: | 70% of initial share prices
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| Pricing date: | Oct. 31
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| Settlement date: | Nov. 3
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| Underwriter: | Goldman Sachs & Co.
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| Fees: | 0.76%
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| Cusip: | 40054LWX8
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