By Angela McDaniels
Tacoma, Wash., April 8 – Goldman Sachs Group, Inc. plans to price trigger phoenix autocallable optimization securities due April 16, 2018 linked to the common stock of Discover Financial Services, according to a 424B2 filing with the Securities and Exchange Commission.
If Discover stock closes at or above the trigger price on a monthly observation date, the issuer will pay a contingent coupon for that month at the rate of 7% per year. Otherwise, no coupon will be paid that month. The trigger price is 78% of the initial share price.
After one year, the notes will be called at par of $10 plus the contingent coupon if the shares close at or above the initial price on a monthly observation date.
If the notes are not called and Discover shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the share price decline from the initial price.
Goldman Sachs & Co. is the underwriter.
| Issuer: | Goldman Sachs Group, Inc.
|
| Issue: | Trigger phoenix autocallable optimization securities
|
| Underlying stock: | Discover Financial Services (Symbol: DFS)
|
| Amount: | $271,000
|
| Maturity: | April 16, 2018
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| Coupon: | 7% per year, payable monthly if Discover stock closes at or above trigger price on observation date for that month
|
| Price: | Par of $10.00
|
| Payout at maturity: | If Discover shares finish at or above trigger price, par plus contingent coupon; otherwise, exposure to share price decline from initial price
|
| Call: | After one year, automatically at par plus contingent coupon if shares close at or above initial price on any monthly observation date
|
| Initial share price: | $57.96
|
| Trigger price: | $45.21, 78% of initial share price
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| Pricing date: | April 10
|
| Settlement date: | April 15
|
| Underwriter: | Goldman Sachs & Co.
|
| Fees: | 2.25%
|
| Cusip: | 38146U744
|
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