By Marisa Wong
Morgantown, W.Va., Sept. 27 – GS Finance Corp. priced $8.39 million of 0% buffered digital notes due March 25, 2019 linked to the performance of the Mexican peso, the South African rand and the Turkish lira, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be guaranteed by Goldman Sachs Group, Inc.
The currencies are equally weighted, and the performance of each currency is measured relative to the dollar.
The issuer said that by purchasing this note, investors are taking the view that the basket return will be positive, which means that the final basket level has increased from the initial basket level because the sum of the currency returns is positive. A currency return will be positive if it takes a greater number of dollars to purchase one unit of the relevant foreign currency on the determination date than on the trade date.
If the basket return is zero or positive, the payout at maturity will be the greater of the threshold settlement amount, $1,108.50 per $1,000 principal amount of notes, and the sum of par plus the basket return.
If the basket return is negative but not below negative 20%, the payout will be par.
If the basket return is below negative 20%, investors will lose 1.25% for every 1% that the basket declines beyond 20%.
Goldman Sachs & Co. is the agent.
| Issuer: | GS Finance Corp.
|
| Guarantor: | Goldman Sachs Group, Inc.
|
| Issue: | Buffered digital notes
|
| Underlying basket: | Mexican peso, South African rand and Turkish lira, each measured relative to dollar; equally weighted
|
| Amount: | $8,385,000
|
| Maturity: | March 25, 2019
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If the basket return is zero or positive, greater of $1,108.50 per $1,000 principal amount and sum of par plus the basket return; if basket return is negative but not below negative 20%, par; otherwise, 1.25% loss for every 1% that the basket declines beyond 20%
|
| Initial exchange rates: | 1 / 17.69925 or 0.05650 for peso/dollar, 1 / 13.265 or 0.07539 for rand/dollar and 1 / 3.4708 or 0.28812 for lira/dollar
|
| Pricing date: | Sept. 20
|
| Settlement date: | Sept. 27
|
| Agent: | Goldman, Sachs & Co. LLC
|
| Fees: | 1.1%
|
| Cusip: | 40054LTU8
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
