By Devika Patel
Knoxville, Tenn., March 7 – GS Finance Corp. priced $2.5 million of trigger phoenix autocallable optimization securities due March 8, 2019 linked to the Russell 2000 index and the Euro Stoxx 50 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 10.35% if each index closes at or above its barrier level, 70% of its initial level, on the observation date for that quarter.
Beginning in March 2017, the notes will be automatically called at par of $10 plus the coupon if each index closes at or above its initial level on any quarterly determination date.
The payout at maturity will be par plus the final contingent coupon unless either 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.
|
| Guarantor: | Goldman Sachs Group, Inc.
|
| Issue: | Trigger phoenix autocallable optimization securities
|
| Underlying indexes: | Russell 2000, Euro Stoxx 50
|
| Amount: | $2.5 million
|
| Maturity: | March 8, 2019
|
| Coupon: | 10.35% per year, payable quarterly if each index closes at or above barrier level on observation date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus contingent coupon unless either index finishes below barrier level; in which case full exposure to decline of worst-performing index
|
| Call: | Beginning in March 2017, automatically called at par plus coupon if each index closes at or above initial level on any quarterly determination date
|
| Initial index levels: | 1,076.048 for Russell 2000, 3,012.87 for Euro Stoxx 50
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| Barrier levels: | 753.234 for Russell 2000, 2,109.009 for Euro Stoxx 50; 70% of initial levels
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| Pricing date: | March 3
|
| Settlement date: | March 8
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| Underwriter: | Goldman Sachs & Co.
|
| Fees: | 2.25%
|
| Cusip: | 36250E480
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