Published on 1/26/2018 in the Prospect News Structured Products Daily.
New Issue: GS Finance sells $1.42 million callable contingent coupon notes on two ETFs, S&P 500
By Wendy Van Sickle
Columbus, Ohio, Jan. 26 – GS Finance Corp. priced $1.42 million of callable contingent coupon notes due July 22, 2021 linked to the S&P 500 index, the SPDR S&P Regional Banking exchange-traded fund and the SPDR S&P Biotech 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 9% if each asset closes at or above 60% of its initial level on the observation date that quarter.
The notes are callable at par on any coupon payment date.
The payout at maturity will be par plus the final coupon unless any asset declines by more than 40%, in which case investors will lose 1% for every 1% that the least-performing asset declines from its initial level.
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 assets: | S&P 500 index, SPDR S&P Regional Banking exchange-traded fund and SPDR S&P Biotech exchange-traded fund
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| Amount: | $1,423,000
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| Maturity: | July 22, 2021
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| Coupon: | 9% per year, payable each quarter that each asset closes at or above 60% of initial level on observation date that period
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| Price: | Par
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| Payout at maturity: | Par plus final coupon unless any asset declines by more than 40%, in which case 1% loss for every 1% that least-performing asset declines from initial level
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| Call option: | At par on any coupon payment date
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| Initial levels: | 2,810.30 for index, $88.92 for biotech ETF, $63.03 for banking ETF
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| Trigger levels: | 1,405.15 for index, $44.46 for biotech ETF, 31.515 for banking ETF; 60% of initial levels
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| Pricing date: | Jan. 19
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| Settlement date: | Jan. 24
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| Underwriter: | Goldman Sachs & Co.
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| Fees: | 1%
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| Cusip: | 40055AFF9
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