Published on 7/8/2016 in the Prospect News Structured Products Daily.
New Issue: GS Finance prices $3.73 million callable contingent coupon notes on Russell, S&P 500
By Marisa Wong
Morgantown, W.Va., July 8 – GS Finance Corp. priced $3.73 million of callable contingent coupon notes due July 6, 2021 linked to the worse performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be guaranteed by Goldman Sachs Group, Inc.
Each quarter, the notes will pay a contingent coupon at an annual rate of 8% if each index closes at or above 60% of its initial level on the determination date for that quarter.
Beginning in July 2017, the notes are callable at par plus the contingent coupon, if any, on any quarterly payment date.
If each index finishes at or above 50% of its initial level, the payout at maturity will be par plus the final contingent coupon, if any. If either index falls by more than 50%, 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: | $3.73 million
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| Maturity: | July 6, 2021
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| Coupon: | 8%, payable each quarter that each index closes at or above 60% barrier on determination 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 either index finishes below 50% trigger level, in which case full exposure to decline of worse-performing index
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| Call: | Beginning in July 2017, at par plus accrued interest, if any, on any quarterly coupon payment date
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| Initial levels: | 1,151.923 for Russell 2000 and 2,098.86 for S&P 500
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| Pricing date: | June 30
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| Settlement date: | July 6
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| Underwriter: | Goldman Sachs & Co.
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| Fees: | 0.6%
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| Cusip: | 40054KET9
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