Published on 9/1/2020 in the Prospect News Structured Products Daily.
New Issue: GS Finance sells $25 million trigger callable contingent yield notes on tech stocks
By Wendy Van Sickle
Columbus, Ohio, Sept. 1 – GS Finance Corp. priced $25 million trigger callable contingent yield notes due Aug. 30, 2023 linked to the least performing of the shares of Amazon.com, Inc., Microsoft Corp., Alibaba Group Holding Ltd., Alphabet Inc. and Facebook, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 33.6% per year if each stock’s closing level is at or above its coupon barrier level, 70% of its initial level, on the determination date that quarter.
The notes will be callable at par plus any coupon on each quarterly observation date other than the final one.
If the notes are not called and each stock finishes at or above its 70% downside threshold, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the least-performing stock’s final level is below its initial level.
The notes are guaranteed by Goldman Sachs Group, Inc.
UBS Financial Services Inc. and Goldman Sachs & Co. LLC are the agents.
| Issuer: | GS Finance Corp.
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| Guarantor: | Goldman Sachs Group, Inc.
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| Issue: | Trigger callable contingent yield securities
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| Underlying stocks: | Amazon.com, Inc., Microsoft Corp., Alibaba Group Holding Ltd., Alphabet Inc. and Facebook, Inc.
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| Amount: | $25 million
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| Maturity: | Aug. 30, 2023
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| Coupon: | 33.6% per year, payable each quarter that each stock closes at or above its coupon barrier on determination date that quarter
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| Price: | Par of $10
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| Payout at maturity: | If each stock finishes at or above downside threshold, par; otherwise, 1% loss for every 1% that least-performing stock’s final level is below initial level
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| Call option: | At par plus any coupon on any quarterly observation date other than final one
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| Initial levels: | $3,400 for Amazon, $226.58 for Microsoft, $284.17 for Alibaba, $293.22 for Facebook and $1,628.52 for Alphabet
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| Coupon barriers: | $2,380 for Amazon, $158.61 for Microsoft, $193.21 for Alibaba, $198.92 for Facebook and $1,139.96 for Alphabet; 70% of initial levels
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| Downside thresholds: | $2,380 for Amazon, $158.61 for Microsoft, $193.21 for Alibaba, $198.92 for Facebook and $1,139.96 for Alphabet; 70% of initial levels
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| Pricing date: | Aug. 28
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| Settlement date: | Sept. 2
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| Agent: | UBS Financial Services Inc. and Goldman Sachs & Co. LLC
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| Fees: | 0.675%
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| Cusip: | 36259L535
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