Published on 10/6/2017 in the Prospect News Structured Products Daily.
New Issue: GS Finance prices $3.24 million callable contingent coupon notes linked to S&P, Russell
By Wendy Van Sickle
Columbus, Ohio, Oct. 6 – GS Finance Corp. priced $3.24 million of callable contingent coupon notes due Oct. 4, 2022 linked to the S&P 500 index and the Russell 2000 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 6% if each index’s closing level is greater than or equal to 55% of its initial level on the observation date for that quarter.
Beginning in October 2018, the notes are callable at par on any coupon payment date.
If each index’s final level is at least 55% of its initial level, the payout at maturity will be par plus the final coupon. If either index declines by more than 45%, investors will lose 1% for every 1% that the lesser-performing index declines from its initial level.
Goldman Sachs & Co. is the underwriter.
| Issuer: | GS Finance Corp.
|
| 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: | $3,242,000
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| Maturity: | Oct. 4, 2022
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| Coupon: | 6%, payable quarterly if each index’s closing level is greater than or equal to 55% of initial level on observation date for that quarter
|
| Price: | Par
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| Payout at maturity: | If each index’s final level is at least 55% of initial level, par plus final coupon; if either index declines by more than 45%, 1% loss for every 1% that lesser-performing index declines from initial level
|
| Call option: | Beginning in October 2018, notes are callable at par on any coupon payment date
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| Initial levels: | 1,490.861 for Russell 2000 and 2,519.36 for S&P 500
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| Barrier levels: | 819.97355 for Russell, 1,385.648 for S&P; 55% of initial levels
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| Pricing date: | Sept. 29
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| Settlement date: | Oct. 4
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| Underwriter: | Goldman Sachs & Co.
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| Fees: | 1.03%
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| Cusip: | 40054LSL9
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