By Jennifer Chiou
New York, Aug. 26 - Goldman Sachs Group, Inc. priced $3,125,000 of 0% currency-linked notes due Sept. 8, 2014 linked to the performance of the Brazilian real relative to the dollar, according to a 424B2 filing with the Securities and Exchange Commission.
The issuer said that by purchasing this note, investors are taking the view that the currency return will be positive, which means that it will take fewer reais to purchase one dollar on the determination date than on the trade date.
If the currency return is positive or zero, the payout at maturity will be par plus the greater of the currency return and 10.275%.
If the currency return is negative but not less than negative 20%, the payout will be par plus 10.275%.
If the currency return is less than negative 20%, investors will be fully exposed to the decline.
Goldman Sachs & Co. is the underwriter with J.P. Morgan Securities LLC as placement agent.
| Issuer: | Goldman Sachs Group, Inc.
|
| Issue: | Currency-linked notes
|
| Underlying currency: | Brazilian real, measured relative to dollar
|
| Amount: | $3,125,000
|
| Maturity: | Sept. 8, 2014
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If currency return is positive or zero, par plus greater of currency return and 10.275%; if currency return is negative but not less than negative 20%, par plus 10.275%; if currency return is less than negative 20%, full exposure to decline
|
| Initial spot rate: | 2.4457 reais per dollar
|
| Pricing date: | Aug. 22
|
| Settlement date: | Aug. 29
|
| Underwriter: | Goldman Sachs & Co.
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 1.1%
|
| Cusip: | 38147QQW9
|
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