New Issue: GS Finance prices $4.52 million leveraged buffered notes on index, ETF basket

By Wendy Van Sickle

Columbus, Ohio, Oct. 21 – GS Finance Corp. priced $4.52 million of 0% leveraged buffered notes due April 24, 2018 linked to a basket containing the S&P 500 index with a 60% weight, the iShares MSCI EAFE exchange-traded fund with a 25% weight, the Russell 2000 index with a 10% weight and the iShares MSCI Emerging Markets exchange-traded fund with a 5% weight, according to a 424B2 filing with the Securities and Exchange Commission.

The notes are guaranteed by Goldman Sachs Group, Inc.

The payout at maturity will be par plus 1.5 times any basket gain, subject to a maximum settlement amount of $1,140 per $1,000 face amount of notes.

Investors will receive par if the index falls by up to 10% and will lose 1% for each 1% decline beyond 10%.

Goldman Sachs & Co. is the agent.

Issuer:	GS Finance Corp.
Guarantor:	Goldman Sachs Group, Inc.
Issue:	Leveraged buffered notes
Basket components:	S&P 500 index (60% weight), iShares MSCI EAFE exchange-traded fund (25% weight), Russell 2000 index (10% weight) and iShares MSCI Emerging Markets exchange-traded fund (5% weight)
Amount:	$4,518,000
Maturity:	April 24, 2018
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus 1.5 times any index gain, capped at 11.4%; par if index falls by up to 10%; 1% loss per 1% drop beyond 10%
Initial levels:	2,144.29 for S&P 500, 58.23 for iShares MSCI EAFE, 1,222.642 for Russell 2000 and 37.72 for iShares MSCI Emerging Markets
Pricing date:	Oct. 19
Settlement date:	Oct. 24
Underwriter:	Goldman Sachs & Co.
Fees:	0.75%
Cusip:	40054KMQ6

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