By Tali Rackner
Minneapolis, July 6 – GS Finance Corp. priced $8.71 million of contingent income autocallable securities due July 2, 2021 linked to the class A common stock of Facebook, Inc., according to a 424B2 with the Securities and Exchange Commission.
The notes are guaranteed by Goldman Sachs Group, Inc.
If Facebook shares close at or above the downside threshold level, 75% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 9.15%.
The notes will be automatically called at par of $10 plus the contingent coupon if Facebook shares close at or above the initial share price on any call observation date.
If the final share price is greater than or equal to the 75% downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.
Goldman Sachs & Co. LLC is the underwriter. Morgan Stanley Wealth Management is acting as dealer.
| Issuer: | GS Finance Corp.
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| Guarantor: | Goldman Sachs Group, Inc.
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| Issue: | Contingent income autocallable securities
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| Underlying stock: | Facebook, Inc.
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| Amount: | $8,712,450
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| Maturity: | July 2, 2021
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| Coupon: | 9.15% per year, payable each quarter that stock closes at or above its downside threshold level on the determination date for that quarter
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| Price: | Par
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| Payout at maturity: | If the stock finishes at or above its downside threshold level, par plus the final contingent coupon; otherwise, investors will lose 1% for every 1% that final share price is less than the initial price
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| Call: | Notes will be called automatically at par plus coupon if shares close at or above initial price on any call observation date
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| Initial share price: | $194.32
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| Downside threshold: | $145.74, 75% of initial level
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| Pricing date: | June 29
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| Settlement date: | July 5
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| Underwriter: | Goldman Sachs & Co. LLC
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| Dealer: | Morgan Stanley Wealth Management
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| Fees: | 2.675%
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| Cusip: | 36255U208
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