Published on 1/18/2017 in the Prospect News Structured Products Daily.
New Issue: GS sells $11.33 million trigger autocallable contingent yield notes on Russell, EAFE
By Wendy Van Sickle
Columbus, Ohio, Jan. 18 – GS Finance Corp. priced $11.33 million of trigger autocallable contingent yield notes due Jan. 19, 2027 linked to the Russell 2000 index and the MSCI EAFE index, 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 8% if each index closes at or above its coupon barrier, 70% of its initial level, on the observation date for that quarter.
The notes will be called at par if each index closes at or above its initial level on any quarterly observation date beginning Jan. 16, 2018.
The payout at maturity will be par plus the final coupon if any unless either index finishes below the downside threshold, 50% of the initial level, in which case investors will lose 1% for each 1% decline of the worse performing index.
Goldman Sachs & Co. is the underwriter.
| Issuer: | GS Finance Corp.
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| Issue: | Trigger autocallable contingent yield notes
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| Underlying indexes: | Russell 2000 and MSCI EAFE
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| Guarantor: | Goldman Sachs Group, Inc.
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| Amount: | $11,334,210
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| Maturity: | Jan. 19, 2027
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| Coupon: | 8%, payable quarterly if each index closes at or above coupon barrier on observation date
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| Price: | Par of $10
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| Call: | Beginning Jan. 16, 2018, at par plus contingent coupon if each index closes at or above initial level on any quarterly observation date
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| Payout at maturity: | Par plus final coupon if any unless index closes below downside threshold, in which case 1% loss for each 1% decline of the worse performing index
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| Initial levels: | 1,372.047 for Russell, 1,727.83 for MSCI EAFE
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| Coupon barrier levels: | 960.433 for Russell, 1,209.481 for MSCI EAFE, 70% of initial levels
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| Downside thresholds: | 686.024 for Russell, 863.915 for MSCI EAFE, 50% of initial levels
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| Pricing date: | Jan. 13
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| Settlement date: | Jan. 19
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| Underwriter: | Goldman, Sachs & Co.
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| Fees: | 3.95%
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| Cusip: | 36251U640
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