Goldman Sachs plans $1 billion sale of fixed-to-floating rate noncumulative preferreds

By Andrea Heisinger and Stephanie N. Rotondo

New York, April 18 - The Goldman Sachs Group Inc. is planning a $1 billion offering of series J fixed-to-floating rate noncumulative preferred stock, according to a market source and a prospectus filed with the Securities and Exchange Commission on Thursday.

Price talk was in the 5.125% to 5.75% area, with pricing expected on the tighter side of that range, the source said.

Goldman Sachs & Co. is leading the deal. BofA Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, RBC Capital Markets LLC, UBS Securities LLC and Wells Fargo Securities LLC are also part of the underwriting group.

When declared, dividends will be payable on the 10th day of February, May, August and November. The dividend will begin floating on May 11, 2023 at three-month Libor plus an as-of-yet undetermined spread.

The New York-based investment bank can call the preferreds on or after May 10, 2023 at par plus accrued dividends. The company can also call the preferreds in whole within 90 days of a regulatory capital treatment event.

Goldman Sachs intends to list the new preferreds on the New York Stock Exchange under the ticker symbol "GSPJ."

Proceeds will provide additional operational funds and will also be used for general corporate purposes.

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