Published on 5/20/2014 in the Prospect News Structured Products Daily.
New Issue: Goldman prices $7.14 million 15-year callable quarterly CMS spread notes
By Jennifer Chiou
New York, May 20 - Goldman Sachs Group, Inc. priced $7,142,000 of callable quarterly CMS spread-linked notes due May 21, 2029, according to a 424B2 filing with the Securities and Exchange Commission.
The interest rate will be 10% for the first year. After that it will be (i) 7.5 times (ii) the spread of the 30-year Constant Maturity Swap rate over the five-year CMS rate minus 25 basis points, subject to a maximum rate of 12%. Interest will be payable quarterly and cannot be less than zero.
The payout at maturity will be par.
Beginning on Nov. 21, 2014, the notes will be callable at par on any interest payment date.
Goldman Sachs & Co. is the underwriter.
Issuer: | Goldman Sachs Group, Inc.
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Issue: | Callable quarterly CMS spread notes
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Underlying rates: | 30-year Constant Maturity Swap and five-year CMS rate
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Amount: | $7,142,000
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Maturity: | May 21, 2029
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Coupon: | 10% for first year; then, (i) 7.5 times (ii) CMS spread minus 25 bps, capped at 12%, floor of 0%; payable quarterly
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Price: | Between 97.25 and par
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Payout at maturity: | Par
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Call option: | At par on any interest payment date beginning on Nov. 21, 2014
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Pricing date: | May 16
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Settlement date: | May 21
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Underwriter: | Goldman Sachs & Co.
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Fees: | 3.625%
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Cusip: | 38147Q5M4
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