By William Gullotti
Buffalo, N.Y., June 9 – GS Finance Corp. priced $1.15 million of ETF-linked notes due June 29, 2023 tied to the iShares Semiconductor ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Goldman Sachs Group, Inc.
The notes will pay a contingent monthly coupon at a variable rate as determined by the daily closing levels of the ETF. If the ETF closes at or above its 95% maximum threshold on every trading day during the observation period, the coupon rate will be 15% per annum. If the ETF closes below its maximum threshold at least once but at or above its 90% intermediate threshold on every trading day during the observation period, the coupon rate will be 10%. If the ETF closes below its intermediate threshold but at or above its 85% minimum threshold on every trading day during the observation period, the coupon rate will be 5%.
No monthly coupon will be paid if the ETF closes below its minimum threshold during the observation period.
The notes will be automatically called at par plus the maximum coupon if the ETF closes at or above its maximum threshold on every trading day for the observation period ending May 27, 2023.
At maturity, if the ETF has closed at or above its intermediate threshold on every trading day during the final monthly observation period, the payout will be par plus 1/3 of 1.0526 times the sum of the ETF return and 5%. In this case, if the ETF finishes below 95% of its initial level, investors may lose up to approximately 1.754%.
If the ETF has closed below its intermediate threshold at least once but at or above its minimum threshold on every trading day during the final monthly period, the payout will be par plus (a) 1/3 of 1.0526 times the sum of the ETF return and 5% plus (b) 1/3 of 1.1111 times the sum of the ETF return and 10%. In this case, investors may lose up to approximately 5.361% if the ETF finishes below 92.432% of initial level.
If the ETF closes below its minimum threshold level at least once during the final observation period, the payout at maturity will be par plus (a) 1/3 of 1.0526 times the sum of the ETF return and 5% plus (b) 1/3 of 1.1111 times the sum of the ETF return and 10% plus (c) 1/3 of 1.1765 times the sum of the ETF return and 15%. In this case, investors will be exposed to significant losses if the ETF finishes below approximately 89.815% of initial level.
Goldman, Sachs & Co. LLC is the agent.
| Issuer: | GS Finance Corp.
|
| Guarantor: | Goldman Sachs Group, Inc.
|
| Issue: | ETF-linked notes
|
| Underlying ETF: | iShares Semiconductor ETF
|
| Amount: | $1.15 million
|
| Maturity: | June 29, 2023
|
| Coupon: | Variable coupon, payable monthly; coupon rate dependent upon daily ETF closing levels during each monthly observation period; 15% annualized if ETF closes at or above maximum threshold on every trading day; 10% annualized if ETF closes below maximum threshold at least once but at or above intermediate threshold on every trading day; 5% annualized if ETF closes below intermediate threshold at least once but at or above minimum threshold on every trading day; if the ETF closes below minimum threshold once, no coupon will be paid for that observation period
|
| Price: | Par
|
| Payout at maturity: | If the ETF closes at or above the intermediate threshold level on every trading day during the final monthly measurement period, par plus 1/3 of 1.0526 times the sum of the ETF return and 5%; if the ETF closes below the intermediate threshold at least once but at or above minimum threshold on every trading day during the final monthly measurement period, par plus (a) 1/3 of 1.0526 times the sum of the ETF return and 5% plus (b) 1/3 of 1.1111 times the sum of the ETF return and 10%; if the ETF closes below the minimum threshold at least once during the final monthly measurement period, par plus (a) 1/3 of 1.0526 times the sum of the ETF return and 5% plus (b) 1/3 of 1.1111 times the sum of the ETF return and 10% plus (c) 1/3 of 1.1765 times the sum of the ETF return and 15%
|
| Call: | Automatically at par plus maximum coupon if the ETF closes at or above its maximum threshold on every trading day during the observation period ending May 27, 2023
|
| Initial level: | $428.34
|
| Maximum threshold: | 95% of initial level
|
| Intermediate threshold: | 90% of initial level
|
| Minimum threshold: | 85% of initial level
|
| Pricing date: | May 27
|
| Settlement date: | June 2
|
| Agent: | Goldman, Sachs & Co. LLC
|
| Fees: | None
|
| Cusip: | 40057M4Y2
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
