By Kiku Steinfeld
Chicago, Oct. 15 – GS Finance Corp. priced $6.24 million of index-linked notes due Oct. 3, 2024 tied to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Goldman Sachs Group, Inc.
For the first year only, the notes will pay a contingent monthly coupon at an annual rate of 4.25% if the index closes at or above 85% of its initial level on every day during the related month.
The notes will be called on Sept. 30, 2021, the final coupon determination date, if the closing level of the index is greater than or equal to 85% of the initial level on every day during the life of the notes to that point, in which case the notes will pay par plus the final coupon.
If the notes are not called, then at maturity participants will either be exposed to the decline of the index or participate in its increase on a 1-to-1 basis plus 15%. In other words, if the index finishes 15% above its initial level, investors will receive par plus 30%. Alternatively, if the index declines by 50%, investors will receive 65% of par.
Goldman Sachs & Co. is the underwriter.
| Issuer: | GS Finance Corp.
|
| Guarantor: | Goldman Sachs Group, Inc.
|
| Issue: | Index-linked notes
|
| Underlying index: | S&P 500
|
| Amount: | $6,241,000
|
| Maturity: | Oct. 3, 2024
|
| Coupon: | 4.25% annual rate, payable monthly until October 2021 if index closes at or above 85% of its initial level on every day of related period; final coupon determination date is Sept. 30, 2021; coupons will not be paid after one year
|
| Price: | Par
|
| Payout at maturity: | Par plus the return of the index, whether negative or positive, plus 15%
|
| Call: | At par plus coupon if closing level of index is greater than or equal to 85% of initial level on every day from pricing date to Sept. 30, 2021
|
| Initial index level: | 3,363
|
| Pricing date: | Sept. 30
|
| Settlement date: | Oct. 5
|
| Underwriter: | Goldman Sachs & Co.
|
| Fees: | 0.25%
|
| Cusip: | 40057CZC8
|
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