Published on 10/20/2017 in the Prospect News Structured Products Daily.
New Issue: GS Finance sells $11.54 million trigger callable contingent yield notes on indexes
By Devika Patel
Knoxville, Tenn., Oct. 20 – GS Finance Corp. priced $11.54 million of trigger callable contingent yield notes due Oct. 24, 2022 linked to the worst performing of the S&P 500 index, the Russell 2000 index and the MSCI EAFE index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be guaranteed by Goldman Sachs Group, Inc.
Each quarter, the notes will pay a contingent coupon at an annual rate of 8% if each index closes at or above its coupon barrier level, 70% of its initial level, on the determination date for that quarter.
The notes will be callable at par plus any coupon on any coupon payment date beginning April 20, 2018.
The payout at maturity will be par of $10 plus the final coupon, unless any index finishes below its 70% barrier level, in which case investors will lose 1% for each 1% decline of the worst performing index.
Goldman, Sachs & Co. is the agent.
| Issuer: | GS Finance Corp.
|
| Guarantor: | Goldman Sachs Group, Inc.
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| Issue: | Trigger callable contingent yield notes
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| Underlying indexes: | S&P 500 index, Russell 2000 index and MSCI EAFE index
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| Amount: | $11,535,000
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| Maturity: | Oct. 24, 2022
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| Coupon: | 8% per year, payable quarterly if each index closes at or above its coupon barrier level on determination date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus final coupon unless any index finishes below barrier level, in which case 1% loss for each 1% decline of worst performing index
|
| Call option: | At par plus any coupon on any coupon date beginning April 20, 2018
|
| Initial levels: | 2,561.26 for S&P, 1,505.144 for Russell, 2,000.93 for EAFE
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| Coupon barrier levels: | 1,792.882 for S&P, 1,053.601 for Russell, 1,400.651 for EAFE; 70% of initial levels
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| Barrier levels: | 1,792.882 for S&P, 1,053.601 for Russell, 1,400.651 for EAFE; 70% of initial levels
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| Pricing date: | Oct. 18
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| Settlement date: | Oct. 23
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| Underwriter: | Goldman, Sachs & Co.
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| Fees: | 1.35%
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| Cusip: | 36254F202
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