Published on 8/31/2016 in the Prospect News Structured Products Daily.
New Issue: GS Finance prices $14.27 million contingent income callable notes on three indexes
By Wendy Van Sickle
Columbus, Ohio, Aug. 31 – GS Finance Corp. priced $14.27 million of contingent income callable securities due Aug. 30, 2018 linked to the least performing of the Russell 2000 index, the Euro Stoxx 50 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be guaranteed by Goldman Sachs Group, Inc.
The notes will pay a contingent quarterly coupon at an annual rate of 9% if each index closes at or above its downside threshold level, 65% of its initial index level, on each day during that quarter.
The notes will be callable at par on any interest payment date.
The payout at maturity will be par unless any index finishes below its downside threshold level, in which case investors will be fully exposed to any losses of the worst performing index.
Goldman Sachs & Co. is the underwriter. Morgan Stanley Wealth Management is the dealer.
| Issuer: | GS Finance Corp.
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| Guarantor: | Goldman Sachs Group, Inc.
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| Issue: | Contingent income callable securities
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| Underlying indexes: | Russell 2000, S&P 500 and Euro Stoxx 50
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| Amount: | $14,267,000
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| Maturity: | Aug. 30, 2018
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| Coupon: | 9% per year, payable quarterly if each index closes at or above its downside threshold level on each day during that quarter
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above downside threshold level, par; if final level of any index is less than downside threshold level, full exposure to decline of lowest-performing index
|
| Call option: | At par on any interest payment date
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| Initial levels: | 1,238.031 for Russell 2000, 2,169.04 for S&P 500 and 3,010.36 for Euro Stoxx 50
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| Downside thresholds: | 804.72015 for Russell 2000, 1,409.876 for S&P 500 and 1,956.734 for Euro Stoxx 50; 65% of initial levels
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| Pricing date: | Aug. 26
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| Settlement date: | Sept. 1
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| Underwriter: | Goldman Sachs & Co.
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| Dealer: | Morgan Stanley Wealth Management
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| Fees: | 2.15%
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| Cusip: | 40054KHW9
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