By Wendy Van Sickle
Columbus, Ohio, July 20 – GS Finance Corp. priced $7.11 million of contingent income autocallable securities due July 18, 2019 linked to the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Goldman Sachs Group, Inc.
If the fund closes 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 10.25%.
The notes will be called at par of $10 plus the contingent coupon if the fund closes at or above the initial share price on any coupon payment date other than the final one beginning on Oct. 15.
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. is the agent, with Morgan Stanley Wealth Management handling distribution.
| 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 ETF: | SPDR S&P Oil & Gas Exploration & Production exchange-traded fund
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| Amount: | $7,109,250
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| Maturity: | July 18, 2019
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| Coupon: | 10.25% annualized, payable quarterly if ETF closes at or above downside threshold on determination date for that quarter
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| Price: | Par
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| Payout at maturity: | If ETF finishes at or above downside threshold, par; otherwise, full exposure to losses
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| Call: | At par if ETF closes at or above initial price on any of the first 11 determination dates
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| Initial share price: | $43.19
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| Downside threshold: | $32.3925, 75% of initial level
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| Pricing date: | July 13
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| Settlement date: | July 18
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| Agent: | Goldman Sachs & Co. LLC
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| Fees: | 1.85%
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| Cusip: | 36255U372
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