By Devika Patel
Knoxville, Tenn., April 10 – GS Finance Corp. priced $3.65 million of callable contingent coupon notes due March 31, 2027 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.
For each of the first 20 quarters, the notes pay a contingent coupon at the rate of 7.25% per year if each index closes at or above its barrier level, 70% of its initial level, on the observation date for that quarter.
For each of the next 12 quarters, the notes pay a contingent coupon at the rate of 10% per year if each index closes at or above its barrier level on the observation date for that quarter.
For each of the final 8 quarters, the notes pay a contingent coupon at the rate of 12% per year if each index closes at or above its barrier level on the observation date for that quarter.
The notes are callable at par of $1,000 on any contingent coupon payment date beginning in March 2018 and ending in December 2026.
The payout at maturity will be par plus the final coupon payment, if any, unless any index finishes below 50% of its initial level, in which case investors will be fully exposed to the decline of the lesser-performing index.
Goldman Sachs & Co. is the underwriter.
| Issuer: | GS Finance Corp.
|
| Issue: | Callable contingent coupon notes
|
| Underlying indexes: | Russell 2000 and S&P 500
|
| Guarantor: | Goldman Sachs Group, Inc.
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| Amount: | $3,646,000
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| Maturity: | March 31, 2027
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| Coupon: | 7.25% per year, payable for the first 20 quarters, 10% per year, payable for the next 12 quarters and 12% per year, payable for the final 8 quarters, if each index closes at or above 70% of initial levels on determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par plus final coupon, if any, unless any index declines by more than 50%, in which case full exposure to losses of lesser-performing index
|
| Call option: | At par on any interest payment date from March 2018 through December 2026
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| Initial levels: | 1,371.645 for Russell 2000 and 2,361.13 for S&P 500
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| Pricing date: | March 29
|
| Settlement date: | March 31
|
| Underwriter: | Goldman, Sachs & Co.
|
| Fees: | 4.83%
|
| Cusip: | 40054KYB6
|
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