Published on 5/29/2018 in the Prospect News Structured Products Daily.
New Issue: GS Finance sells $3.63 million trigger callable contingent yield notes on three indexes
By Wendy Van Sickle
Columbus, Ohio, May 29 – GS Finance Corp. priced $3.63 million of trigger callable contingent yield notes due May 26, 2028 linked to the least performing of the MSCI Emerging Markets index, the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon if each index closes at or above its coupon barrier, 70% of its initial level, on the observation date that quarter. The contingent coupon rate is 11.2% per year.
After six months, the notes are callable at par of $10 on each quarterly observation date other than the final one.
If the notes are not called and each index finishes at or above its coupon barrier level, the payout at maturity will be par plus the contingent coupon.
The payout at maturity will be par plus the final coupon, if any, unless any index finishes below 50% of its initial level, in which case investors will be fully exposed to the loss of the least performing index.
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 notes
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| Underlying indexes: | Euro Stoxx 50, Russell 2000 and MSCI Emerging Markets
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| Amount: | $3,625,000
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| Maturity: | May 26, 2028
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| Coupon: | 11.2% per year, payable quarterly if each index closes at or above its coupon barrier on observation date that quarter
|
| Price: | Par of $10
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| Payout at maturity: | Par plus final coupon, if any, unless any index finishes below 50% of initial level, in which case investors will be fully exposed to loss of the least performing index
|
| Call option: | After six months at par on each quarterly observation date other than final one
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| Initial levels: | 1,627.609 for Russell, 3,541.82 for Stoxx and 1,133.1 for Emerging Markets
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| Coupon barriers: | 1,139.326 for Russell, 2,479.274 for Stoxx and 793.71 for Emerging Markets; 70% of initial levels
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| Coupon barriers: | 813.805 for Russell, 1,770.91 for Stoxx and 566.55 for Emerging Markets; 50% of initial levels
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| Pricing date: | May 23
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| Settlement date: | May 29
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| Agents: | UBS Financial Services Inc. and Goldman Sachs & Co. LLC
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| Fees: | 1.4%
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| Cusip: | 36254G705
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