Published on 8/16/2018 in the Prospect News Structured Products Daily.
New Issue: GS Finance prices $4.94 million of contingent income callables tied to three indexes
By Wendy Van Sickle
Columbus, Ohio, Aug. 16 – GS Finance Corp. priced $4.94 million of contingent income callable securities due Feb. 16, 2021 linked to the least performing of the Russell 2000 index, the S&P 500 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.
The notes will pay a contingent quarterly coupon at an annualized rate of 13% if each index closes at or above its 85% coupon barrier on the observation date that quarter.
The notes will be callable at par on any quarterly determination date other than the final date.
The payout at maturity will be par plus the final coupon unless any index finishes below its 75% downside threshold, in which case investors will be fully exposed to the decline of the worst performing index.
Goldman Sachs & Co. LLC is the agent.
| Issuer: | GS Finance Corp.
|
| Guarantor: | Goldman Sachs Group, Inc.
|
| Issue: | Contingent income callable securities
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| Underlying indexes: | Russell 2000, S&P 500 and Euro Stoxx 50
|
| Amount: | $4,939,000
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| Maturity: | Feb. 16, 2021
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| Coupon: | 13% annualized, payable quarterly if each index closes at or above coupon barrier on observation date that quarter
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above downside threshold, par; otherwise, full exposure to decline of worst performing index
|
| Call option: | At par on any interest payment date
|
| Initial levels: | 1,686.804 for Russell, 2,833.28 for S&P and 3,426.28 for Stoxx
|
| Coupon barriers: | 1,433.7834 for Russell, 2,408.288 for S&P and 2,912.338 for Stoxx; 85% of initial levels
|
| Downside thresholds: | 1,265.103 for Russell, 2,124.96 for S&P and 2,569.71 for Stoxx; 75% of initial levels
|
| Pricing date: | Aug. 10
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| Settlement date: | Aug. 15
|
| Agent: | Goldman Sachs & Co. LLC
|
| Fees: | 2.425%
|
| Cusip: | 40055QT77
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