By Wendy Van Sickle
Columbus, Ohio, July 7 – GS Finance Corp. priced $623,000 of callable contingent coupon notes due June 30, 2019 linked to the least performing of 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 will be guaranteed by Goldman Sachs Group, Inc.
The notes will pay a contingent quarterly coupon at an annual rate of between 10.5% if each ETF closes at or above 65% of its initial level on the coupon payment date for that quarter.
Beginning in December 2017 and ending in March 2019, the notes are callable in whole but not in part at par plus the contingent coupon on any coupon payment date.
The payout at maturity will be par plus the final coupon unless either ETF finishes below 65% of its initial level, in which case investors will lose 1% for each 1% loss of the worst performing ETF from its initial level.
Goldman Sachs & Co. is the agent.
| 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 Oil & Gas Exploration & Production, SPDR S&P Biotech
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| Amount: | $623,000
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| Maturity: | June 30, 2019
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| Coupon: | 10.5% per year, payable quarterly if each asset closes at or above 65% coupon barrier on determination date for that period
|
| Price: | Par
|
| Payout at maturity: | Par unless either asset finishes below 65% of initial level, in which case full exposure to losses of worse performing asset
|
| Call option: | At par on any interest payment date beginning in December 2017 and ending in March 2019
|
| Initial levels: | $31.13 for Oil & Gas, $77.27 for Biotech
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| Coupon barriers: | 65% of initial levels
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| Pricing date: | June 27
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| Settlement date: | June30
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| Underwriter: | Goldman Sachs & Co.
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| Fees: | 2.925%
|
| Cusip: | 40054LF74
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