By Stephanie N. Rotondo
Seattle, July 20 – The Goldman Sachs Group Inc. sold $650 million of 5.3% $1,000-par series O fixed-to-floating rate noncumulative preferred stock (expected ratings: Ba1/BB/BB+/BBB), according to a market source on Wednesday.
Initial price talk was in the 5.75% area, a source reported. It was then revised to 5.35%.
Goldman Sachs & Co. ran the books.
Dividends will be fixed through Nov. 10, 2026. During that time, they will be paid on a semiannual basis. After Nov. 10, 2026, the dividend rate will begin floating at Libor plus 383.4 basis points and will be payable quarterly.
The preferreds become redeemable Nov. 10, 2026 at par plus accrued dividends. The issue can also be redeemed in whole within 90 days of a regulatory capital treatment event.
The securities will not be listed.
Proceeds will be used to provide additional funds for operations and for other general corporate purposes.
Goldman Sachs is a New York-based banking institution.
Issuer: | The Goldman Sachs Group Inc.
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Securities: | Series O fixed-to-floating rate noncumulative preferred stock
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Amount: | $650 million
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Maturity: | Perpetual
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Bookrunner: | Goldman Sachs & Co.
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Dividend: | Fixed at 5.3% until Nov. 10, 2026, then floating at Libor plus 383.4 bps
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Price: | Par of $1,000
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Yield: | 5.3%
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Talk: | Initially in 5.75% area, then revised to 5.35%
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Call options: | On or after Nov. 10, 2026 or in whole within 90 days of a regulatory capital treatment event at par plus accrued dividends
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Pricing date: | July 20
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Settlement date: | July 27
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Expected ratings: | Moody’s: Ba1
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| S&P: BB
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| Fitch: BB+
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| DBRS: BBB
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