Published on 8/15/2017 in the Prospect News Structured Products Daily.
New Issue: GS Finance prices $10.75 million trigger autocallable contingent yield notes on Russell, Stoxx
By Wendy Van Sickle
Columbus, Ohio, Aug. 15 – GS Finance Corp. priced $10.75 million of trigger autocallable contingent yield notes due Aug. 16, 2027 linked to the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Goldman Sachs Group, Inc.
Each quarter, the notes pay a contingent coupon at an annual rate of 7.5% if each index closes at or above its coupon barrier, 70% of its initial level, on the observation date for that quarter.
Beginning in August 2018, the notes will be automatically called at par of $10 if each index closes at or above its initial level on any quarterly observation date.
The payout at maturity will be par unless either index finishes below its 50% trigger level, in which case investors will be fully exposed to the decline of the lesser-performing index.
Goldman Sachs & Co. is the underwriter.
Issuer: | GS Finance Corp.
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Guarantor: | Goldman Sachs Group, Inc.
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Issue: | Trigger autocallable contingent yield notes
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Underlying indexes: | Russell 2000 index and Euro Stoxx 50 index
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Amount: | $10,753,160
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Maturity: | Aug. 16, 2027
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Coupon: | 7.5%, payable quarterly if each index closes at or above coupon barrier on observation date
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Price: | Par of $10
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Call: | Beginning in August 2018, at par plus contingent coupon if each index closes at or above initial level on any quarterly observation date
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Payout at maturity: | Par unless either index finishes below trigger level, in which case 1% loss for each 1% decline of the worse performing index
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Initial levels: | 1,374.231 for Russell, 3,406.34 for Stoxx
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Coupon barriers: | 961.962 for Russell, 2,384.438 for Stoxx, 70% of initial levels
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Trigger levels: | 687.116 for Russell, 1,703.17 for Stoxx, 50% of initial levels
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Pricing date: | Aug. 11
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Settlement date: | Aug. 16
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Agents: | Goldman Sachs & Co.
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Fees: | 3.95%
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Cusip: | 36253M562
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