Published on 5/26/2017 in the Prospect News Structured Products Daily.
New Issue: GS Finance prices $10.12 million callable contingent coupon notes linked to indexes, EAFE ETF
By Angela McDaniels
Tacoma, Wash., May 26 – GS Finance Corp. priced $10.12 million of callable contingent coupon notes due Nov. 30, 2020 linked to the S&P 500 index, the Russell 2000 index and the iShares MSCI EAFE exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Goldman Sachs Group, Inc.
Each quarter, the notes will pay a contingent coupon at an annual rate of 8.85% if each underlier closes at or above its barrier level, 75% of its initial level, on each trading day during that quarter.
Beginning in November 2017, the notes are callable at par on any coupon payment date.
If the final level of each underlier is greater than or equal 60% of its initial level, the payout at maturity will be par. Otherwise, investors will be fully exposed to the decline of the least-performing underlier.
Goldman Sachs & Co. is the underwriter.
| Issuer: | GS Finance Corp.
|
| Guarantor: | Goldman Sachs Group, Inc.
|
| Issue: | Callable contingent coupon notes
|
| Underliers: | Russell 2000 index, S&P 500 index and iShares MSCI EAFE ETF
|
| Amount: | $10,123,000
|
| Maturity: | Nov. 30, 2020
|
| Coupon: | 8.85%, payable quarterly if each underlier closes at or above barrier level on each trading day during that quarter
|
| Price: | Par
|
| Payout at maturity: | If final level of each underlier is greater than or equal 60% of initial level, par; | otherwise, full exposure to decline of least-performing underlier
|
| Call option: | Beginning in November 2017, at par on any coupon payment date
|
| Initial levels: | 1,382.509 for Russell 2000, 2,404.39 for S&P 500 and $66.24 for ETF
|
| Barrier levels: | 75% of initial levels
|
| Pricing date: | May 24
|
| Settlement date: | May 30
|
| Underwriter: | Goldman Sachs & Co.
|
| Fees: | 2.5%
|
| Cusip: | 40054LD35
|
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