Published on 1/10/2017 in the Prospect News Structured Products Daily.
New Issue: GS Finance prices $7.05 million contingent income callable notes linked to indexes
By Angela McDaniels
Tacoma, Wash., Jan. 10 – GS Finance Corp. priced $7.05 million of contingent income callable securities due Jan. 10, 2019 linked to the worst performing of the Euro Stoxx 50 index, the Russell 2000 index and the S&P 500 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 pay a contingent coupon at an annual rate of 13.1% if each index closes at or above its downside threshold level, 75% of its initial index level, on each day during that quarter.
Beginning Oct. 11, 2018, the notes are callable at par on any quarterly determination date other than the final one.
If each index finishes at or above its downside threshold level, the payout at maturity will be par plus the final contingent coupon. If the final level of any index is less than its downside threshold level, investors will be fully exposed to the decline of the least-performing index.
Goldman Sachs & Co. is the underwriter. Morgan Stanley Wealth Management is acting as dealer.
| Issuer: | GS Finance Corp.
|
| Guarantor: | Goldman Sachs Group, Inc.
|
| Issue: | Contingent income callable securities
|
| Underlying indexes: | Euro Stoxx 50, Russell 2000 and S&P 500
|
| Amount: | $7,047,000
|
| Maturity: | Jan. 10, 2019
|
| Coupon: | 13.1% per year, payable quarterly if each index closes at or above its downside threshold level on each day during that quarter
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above downside threshold level, par plus final contingent coupon; if final level of any index is less than downside threshold level, full exposure to decline of lowest-performing index
|
| Call option: | Beginning Oct. 11, 2018, at par on any quarterly determination date other than final one
|
| Initial index levels: | 2,276.98 for S&P 500, 1,367.281 for Russell 2000 and 3,321.17 for Euro Stoxx 50
|
| Downside threshold: | 1,707.73 for S&P 500, 1,025.46075 for Russell 2000 and 2,490.8775 for Euro Stoxx 50; 75% of initial index levels
|
| Pricing date: | Jan. 6
|
| Settlement date: | Jan. 11
|
| Underwriter: | Goldman Sachs & Co.
|
| Dealer: | Morgan Stanley Wealth Management
|
| Fees: | 2.15%
|
| Cusip: | 40054KTT3
|
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