By Marisa Wong
Morgantown, W.Va., March 7 – GS Finance Corp. priced $2.1 million of callable contingent coupon notes due Sept. 6, 2019 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 are guaranteed by Goldman Sachs Group, Inc.
Each quarter, the notes pay a contingent coupon at the rate of 5.8% per year if each index closes at or above its barrier level, 70% of its initial level, on the observation date for that quarter.
The notes are callable at par of $1,000 on any contingent coupon payment date from September 2017 through June 2019.
The payout at maturity will be par plus the final coupon payment unless either index finishes below 70% of its initial level, in which case investors will lose 1.4286% for every 1% decline of the lesser-performing index beyond the 30% buffer.
Goldman Sachs & Co. is the underwriter.
| 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: | $2.1 million
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| Maturity: | Sept. 6, 2019
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| Coupon: | 5.8% per year, payable on a quarter if each index closes at or above 70% of initial level on determination date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless either index declines by more than 30%, in which case 1.4286% loss for every 1% decline of lesser-performing index beyond 30% buffer
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| Call option: | At par on any interest payment date from September 2017 through June 2019
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| Initial levels: | 1,395.668 for Russell and 2,381.92 for S&P
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| Pricing date: | March 2
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| Settlement date: | March 7
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| Underwriter: | Goldman, Sachs & Co.
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| Fees: | 0.425%
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| Cusip: | 40054KYW0
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