By Wendy Van Sickle
Columbus, Ohio, June 22 – GS Finance Corp. priced $930,500 of contingent income autocallable securities due June 20, 2019 linked to the common stock of Applied Materials, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be guaranteed by Goldman Sachs Group, Inc.
If Applied Materials shares close at or above the downside threshold level, 80% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 10.3%.
The notes will be called at par of $10 plus the contingent coupon if Applied Materials shares close at or above the initial share price on any quarterly determination date other than the final determination date.
If the final share price is greater than or equal to the 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. 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: | Applied Materials, Inc.
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| Amount: | $930,500
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| Maturity: | June 20, 2019
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| Coupon: | 10.3% per year, payable quarterly if shares close at or above downside threshold level on observation date for that quarter
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| Price: | Par of $10.00
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| Payout at maturity: | If stock finishes at or above downside threshold level, par plus final contingent coupon; otherwise, full exposure to any losses
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| Call: | At par plus contingent coupon if shares close at or above initial share price on any quarterly determination date other than the final one
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| Initial share price: | $23.43
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| Downside threshold: | $18.744, 80% of initial share price
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| Pricing date: | June 17
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| Settlement date: | June 22
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| Underwriter: | Goldman Sachs & Co.
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| Dealer: | Morgan Stanley Wealth Management
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| Fees: | 2.675%
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| Cusip: | 36250Y288
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