Published on 1/27/2016 in the Prospect News Structured Products Daily.
New Issue: GS Finance sells $10 million trigger phoenix callable optimization securities on indexes
By Wendy Van Sickle
Columbus, Ohio, Jan. 27 – GS Finance Corp. priced $10 million of trigger phoenix callable optimization securities due Jan. 30, 2020 linked to the MSCI EAFE index, 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.
Each quarter, the notes will pay a contingent coupon at an annual rate of 10.65% if each index closes at or above its barrier level, 60% of its initial level, on the observation date for that quarter.
The notes will be callable at par on any interest payment date.
The payout at maturity will be par plus the final contingent coupon unless any index finishes below its barrier level, in which case investors will be fully exposed to the decline of the least-performing index.
Goldman Sachs & Co. is the underwriter.
| Issuer: | GS Finance Corp.
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| Issue: | Trigger phoenix autocallable optimization securities
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| Underlying indexes: | MSCI EAFE, Russell 2000, S&P 500
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| Amount: | $10 million
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| Maturity: | Jan. 30, 2020
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| Coupon: | 10.65% per year, payable quarterly if each index closes at or above coupon barrier level on observation date for that quarter
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| Price: | Par of $10
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| Payout at maturity: | Par plus contingent coupon unless any index finishes below 60% coupon barrier level; in which case full exposure to decline of worst performing index
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| Call: | At par on any interest payment date
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| Initial index levels: | 1,568.50 for MCSI EAFE, 2 997.373 for Russell 2000, 1,877.08 for S&P 500
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| Barrier levels: | 941.1 for MCSI EAFE, 598.424 for Russell 2000, 1,126.248 for S&P 500, 60% of initial levels
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| Pricing date: | Jan. 25
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| Settlement date: | Jan. 28
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| Agent: | Goldman Sachs & Co.
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| Fees: | 2.05%
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| Cusip: | 36250E290
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