Published on 6/24/2016 in the Prospect News Structured Products Daily.
New Issue: GS Finance prices $2.38 million callable contingent coupon notes linked to indexes
By Tali Rackner
Norfolk, Va., June 24 – GS Finance Corp. priced $2.38 million of callable contingent coupon notes due June 26, 2019 linked to the least performing of the Russell 2000 index, the S&P 500 index and the Euro Stoxx 50 index, and 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 contingent quarterly coupon at an annual rate of 9.5% if each index closes at or above 60% of its initial level on the coupon payment date for that quarter.
The notes are callable at par plus the contingent coupon on any coupon payment date.
The payout at maturity will be par plus the final coupon unless any index finishes below 60% of its initial level, in which case investors will be fully exposed to the losses of the worst performing index.
Goldman Sachs & Co. is the underwriter.
| 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, S&P 500 and Euro Stoxx 50
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| Amount: | $2,375,000
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| Maturity: | June 26, 2019
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| Coupon: | 9.5%, payable quarterly if each index closes at or above 60% barrier level on observation date for that quarter
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| Price: | Par of $1,000
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| Payout at maturity: | Par plus final coupon, if any, unless return of any index finishes below 60% of its initial level, in which case full exposure to decline of worse-performing index
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| Call: | At par plus accrued interest, if any, on any quarterly coupon payment date
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| Initial levels: | 1,153.871 for Russell 2000, 2,088.9 for S&P 500 and 2,967.34 for Euro Stoxx 50
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| Barrier levels: | 60% of initial levels
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| Pricing date: | June 21
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| Settlement date: | June 24
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| Underwriter: | Goldman Sachs & Co.
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| Fees: | 2%
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| Cusip: | 40054KEB8
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