Published on 8/18/2020 in the Prospect News Structured Products Daily.
New Issue: GS Finance prices $5.14 million contingent income callable notes linked to indexes
By Wendy Van Sickle
Columbus, Ohio, Aug. 18 – GS Finance Corp. priced $5.14 million of contingent income callable securities due Aug. 11, 2022 linked to the least performing of the Dow Jones industrial average, the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at the rate of 9.25% per year if each index closes at or above its coupon barrier, 70% of its initial level, on the coupon observation date that quarter.
The notes are callable at par plus the coupon, if any, on any quarterly coupon payment date other than the final one.
If each index finishes at or above its downside threshold level, 70% of its initial level, the payout at maturity will be par plus the coupon. Otherwise, investors will be fully exposed to decline of the least-performing index from its initial level.
The notes are guaranteed by Goldman Sachs Group Inc.
Goldman Sachs & Co. LLC is the underwriter. Morgan Stanley Wealth Management is the dealer.
| Issuer: | GS Finance Corp.
|
| Guarantor: | Goldman Sachs Group Inc.
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| Issue: | Contingent income callable securities
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| Underlying indexes: | Dow Jones industrial average, S&P 500 and Russell 2000
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| Amount: | $5,138,000
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| Maturity: | Aug. 11, 2022
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| Coupon: | 9.25% per year, payable quarterly if each index closes at or above coupon barrier level on coupon observation date that quarter
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above downside threshold level, par plus coupon, if any; otherwise, full exposure to least-performing index’s decline from initial level
|
| Call option: | Callable at par plus coupon on any quarterly coupon payment date except final one
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| Initial levels: | 3,351.28 for S&P, 1,569.185 for Russell and 27,433.48 for Dow
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| Coupon barriers: | 2,345.896 for S&P, 1,098.4295 for Russell and 19,203.436 for Dow; 70% of initial levels
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| Downside thresholds: | 2,345.896 for S&P, 1,098.4295 for Russell and 19,203.436 for Dow; 70% of initial levels
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| Pricing date: | Aug. 7
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| Settlement date: | Aug. 12
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| Underwriter: | Goldman Sachs & Co. LLC
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| Dealer: | Morgan Stanley Wealth Management
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| Fees: | 2.15%
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| Cusip: | 40057CKS9
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