By Wendy Van Sickle
Columbus, Ohio, Jan. 29 – GS Finance Corp. priced $1.4 million of callable range accrual notes due Jan. 29, 2031 linked to the Russell 2000 index, according to a 424B2 filed with the Securities and Exchange Commission.
The coupon will be fixed at 10% for the first year. After that, interest will accrue at 8 times the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate for each day that the index closes at or above the barrier level, 50% of the initial index level, up to a maximum rate of 10%. Interest will be payable quarterly and cannot be less than zero.
The payout at maturity will be par unless the index falls by more than the 50% trigger level, in which case investors will be fully exposed to any losses.
The notes will be callable at par on any interest payment date after one year.
The notes are guaranteed by Goldman Sachs Group, Inc.
Goldman Sachs & Co. is the underwriter.
| Issuer: | GS Finance Corp.
|
| Gurantor: | Goldman Sachs Group Inc.
|
| Issue: | Callable range accrual notes
|
| Underlying index: | Russell 2000
|
| Amount: | $1,396,000
|
| Maturity: | Jan. 29, 2031
|
| Coupon: | Payable quarterly; 10% for the first year, then 8 times the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate for each day the index closes at or above the barrier level up to a maximum rate of 10% with a floor of 0
|
| Price: | Par of $10
|
| Call: | At par on any interest payment date after one year
|
| Payout at maturity: | Par unless index falls below trigger level, in which case full exposure to the loss
|
| Initial index level: | 1,017.974
|
| Barrier/trigger level: | 508.987, 50% of its initial level
|
| Pricing date: | Jan. 26
|
| Settlement date: | Jan. 29
|
| Agents: | Goldman Sachs & Co.
|
| Fees: | 4.55%
|
| Cusip: | 40054CAS3
|
|
|
© 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.
