By Angela McDaniels
Tacoma, Wash., Oct. 3 – GS Finance Corp. priced $1.25 million of callable contingent coupon notes due Sept. 30, 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.
Each quarter, the notes will pay a contingent coupon at an annual rate of 8.25% if each index closes at or above its barrier level, 72.5% of its initial level, on the observation date for that quarter.
Beginning in September 2017, the notes are callable at par on any coupon payment date.
The payout at maturity will be par plus the final coupon, if any, unless the return of either index is less than negative 50%, in which case investors will be fully exposed to the decline of the worse-performing index.
Goldman Sachs & Co. is the underwriter.
| Issuer: | GS Finance Corp.
|
| Guarantor: | Goldman Sachs Group, Inc.
|
| Issue: | Callable contingent coupon notes
|
| Underlying indexes: | Russell 2000 and S&P 500
|
| Amount: | $1,249,000
|
| Maturity: | Sept. 30, 2026
|
| Coupon: | 8.25%, payable quarterly if each index closes at or above barrier level on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par plus final coupon, if any, unless return of either index is less than negative 50%, in which case full exposure to decline of worse-performing index
|
| Call: | At par on any coupon payment date beginning in September 2017
|
| Initial levels: | 1,255.666 for Russell 2000 and 2,171.37 for S&P 500
|
| Barrier levels: | 72.5% of initial levels
|
| Pricing date: | Sept. 28
|
| Settlement date: | Sept. 30
|
| Underwriter: | Goldman Sachs & Co.
|
| Fees: | 4.7%
|
| Cusip: | 40054KKX3
|
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