Published on 5/2/2016 in the Prospect News Structured Products Daily.
New Issue: Goldman prices $1.39 million callable contingent coupon notes tied to S&P, Russell
By Susanna Moon
Chicago, May 2 – GS Finance Corp. priced $1.39 million of callable contingent coupon notes due April 29, 2026 linked to the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Goldman Sachs Group, Inc.
The notes will pay a quarterly coupon at an annual rate of 8% if each index closes above the 70% coupon barrier level on the observation date for that quarter.
The notes will be callable at par plus any coupon due on any payment date after one year until Jan. 29, 2026.
The payout at maturity will be par plus any contingent coupon unless either index finishes below the 50% trigger level, in which case investors will be fully exposed to any losses of the worse performing index.
Goldman, Sachs & Co. is the agent.
Issuer: | GS Finance Corp.
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Guarantor: | Goldman Sachs Group, Inc.
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Issue: | Callable contingent coupon notes
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Underlying indexes: | Russell 2000 and S&P 500
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Amount: | $1,392,000
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Maturity: | April 29, 2026
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Coupon: | 8%, payable quarterly if each index closes at or above coupon barrier on observation date
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Price: | Par
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Payout at maturity: | Par plus contingent coupon unless either index finishes below 50% trigger level, in which case full exposure to any loses of worse performing index
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Call option: | At par plus any coupon due on any coupon payment date beginning April 29, 2017 up to Jan. 29, 2026
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Initial levels: | 2,095.15 for S&P, 1,154.149 for Russell 2000
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Coupon barriers: | 70% of initial levels
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Trigger levels: | 50% of initial levels
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Pricing date: | April 27
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Settlement date: | April 29
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Underwriter: | Goldman Sachs & Co.
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Fees: | 4.45%
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Cusip: | 40054KAL0
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