Published on 4/18/2024 in the Prospect News Investment Grade Daily and Prospect News Preferred Stock Daily.
New Issue: Goldman details $2.25 billion of 7.5% series X perpetual preferreds
By Mary-Katherine Stinson and Cristal Cody
Lexington, Ky., April 18 – Goldman Sachs Group, Inc. gave details of its $2.25 billion offering of 7.5% series X fixed-rate reset non-cumulative preferred stock, according to a 424B2 filing with the Securities and Exchange Commission.
The deal, which priced on Tuesday at par, comes with five years of call protection. The preferreds are callable, in whole or in part, on any dividend payment date on or after May 10, 2029.
The rate resets for the first time on May 10, 2029 to Treasuries plus 280.9 basis points.
Initial price talk was in the 7.75% area. Guidance tightened the dividend rate to the 7.5% area during pricing, according to a market source.
Goldman Sachs & Co. LLC is the bookrunner.
Proceeds will be used to redeem all outstanding series K preferred stock with any remainder allocated to provide additional funds for operations or other general corporate purposes.
The preferreds will not be listed on any exchange.
Goldman Sachs is a New York-based banking, securities and investment management company.
| Issuer: | Goldman Sachs Group, Inc.
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| Amount: | $2.25 billion
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| Issue: | Series X fixed-rate reset non-cumulative preferred stock
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| Maturity: | Perpetual
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| Bookrunner: | Goldman Sachs & Co. LLC
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| Co-managers: | CastleOak Securities, LP, Mischler Financial Group, Inc., Ramirez & Co., Inc., U.S. Bancorp Investments Inc., Capital One Securities Inc., Scotia Capital (USA) Inc., Truist Securities Inc., Banco de Sabadell SA, CIBC World Markets Corp., Commonwealth Bank of Australia, Fifth Third Securities Inc., Huntington Investment Co., Intesa Sanpaolo IMI Securities Corp., Lloyds Securities Inc., Multi-Bank Securities, Inc., Natixis Securities Americas LLC, Santander US Capital Markets LLC, Standard Chartered Bank, M&T Securities Inc., Drexel Hamilton LLC, PNC Capital Markets LLC, Stern Brothers & Co., BMO Capital Markets Corp., RBC Capital Markets LLC, TD Securities (USA) LLC, ABN Amro Capital Markets (USA) LLC, BNY Mellon Capital Markets, LLC, Citizens JMP Securities LLC, Danske Markets Inc., Great Pacific Securities, ING Financial Markets LLC, KeyBanc Capital Markets Inc., Mizuho Securities USA Inc., nabSecurities, LLC, Nordea, SMBC Nikko Securities America Inc., Westpac Capital Markets LLC and Regions Securities LLC
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| Counsel to issuer: | Richards, Layton & Finger, PA
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| Counsel to underwriters: | Sullivan & Cromwell LLP
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| Dividend: | 7.5% initial rate; resets starting May 10, 2029 to Treasuries plus 280.9 bps
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| Price: | Par
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| Yield: | 7.5%
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| Call features: | In whole or in part, on any dividend payment date on or after May 10, 2029
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| Trade date: | April 16
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| Settlement date: | April 23
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| Distribution: | SEC registered
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| Price talk: | 7.75% area; guidance to 7.5% area
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