By Angela McDaniels
Tacoma, Wash., April 4 – GS Finance Corp. priced $6.36 million of contingent income autocallable securities due April 4, 2018 linked to the lesser performing of the Russell 2000 index and 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.
If each index closes at or above its downside threshold level, 70% of its initial level, on a quarterly determination date, the notes will pay a contingent coupon that quarter at an annualized rate of 7.85%.
Beginning Sept. 30, the notes will be called at par of $10 plus the contingent coupon if each index closes at or above its initial level on any quarterly determination date other than the final determination date.
If the final level of each index is greater than or equal to its 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 level of the lesser-performing index is less than its initial level.
Goldman Sachs & Co. is the underwriter. Morgan Stanley Wealth Management is acting as dealer.
| Issuer: | GS Finance Corp.
|
| Guarantor: | Goldman Sachs Group Inc.
|
| Issue: | Contingent income autocallable securities
|
| Underlying indexes: | Russell 2000 and S&P 500
|
| Amount: | $6,357,600
|
| Maturity: | April 4, 2018
|
| Coupon: | 7.85% per year, payable quarterly if each index closes at or above downside threshold level on determination date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final index level of each is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that lesser-performing index finishes below initial level
|
| Call: | At par plus contingent coupon if each index closes at or above initial index level on any quarterly determination date other than final determination date
|
| Initial index levels: | 2,059.74 for S&P 500 and 1,114.028 for Russell 2000
|
| Downside threshold: | 1,441.818 for S&P 500 and 779.8196 for Russell 2000; 70% of initial share price
|
| Pricing date: | March 31
|
| Settlement date: | April 5
|
| Underwriter: | Goldman Sachs & Co.
|
| Dealer: | Morgan Stanley Wealth Management
|
| Fees: | 2.15%
|
| Cusip: | 36250E548
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