By Angela McDaniels
Tacoma, Wash., Oct. 10 – GS Finance Corp. priced $4.3 million of trigger autocallable contingent yield notes due Oct. 8, 2027 linked to the lesser performing of the Euro Stoxx 50 index and the Russell 2000 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 will pay a contingent coupon at the rate of 7% per year if each index closes at or above its coupon barrier, 70% of its initial level, on the observation date for that quarter.
Beginning in October 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.
If the notes are not called and the lesser-performing index finishes at or above its downside threshold, 50% of its initial level, the payout at maturity will be par plus the final coupon, if applicable. Otherwise, investors will lose 1% for every 1% that the lesser-performing index’s final level is less than its initial level.
Goldman Sachs & Co. is the underwriter.
| Issuer: | GS Finance Corp.
|
| Guarantor: | Goldman Sachs Group, Inc.
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| Issue: | Trigger autocallable contingent yield notes
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| Underlying indexes: | Euro Stoxx 50 and Russell 2000
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| Amount: | $4.3 million
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| Maturity: | Oct. 8, 2027
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| Coupon: | 7% per year, payable quarterly if each index closes at or above coupon barrier on observation date for that quarter
|
| Price: | Par of $10
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| Payout at maturity: | If notes are not called and final level of lesser-performing index is greater than or equal to downside threshold, par plus final coupon, if applicable; otherwise, 1% loss for every 1% that lesser-performing index’s final level is less than initial level
|
| Call: | Beginning in October 2018, automatically called at par if each index closes at or above initial level on any quarterly observation date
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| Initial index levels: | 3,613.54 for Euro Stoxx 50 and 1,512.088 for Russell 2000
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| Coupon barriers: | 2,529.478 for Euro Stoxx 50 and 1,058.462 for Russell 2000; 70% of initial levels
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| Downside thresholds: | 1,806.77 for Euro Stoxx 50 and 756.044 for Russell 2000; 50% of initial levels
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| Pricing date: | Oct. 5
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| Settlement date: | Oct. 10
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| Underwriter: | Goldman Sachs & Co.
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| Fees: | 3.9%
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| Cusip: | 36254F160
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