Published on 11/15/2017 in the Prospect News Structured Products Daily.
New Issue: GS Finance prices $829,000 callable contingent coupon notes linked to S&P, Russell
By Wendy Van Sickle
Columbus, Ohio, Nov. 15 – GS Finance Corp. priced $829,000 of callable contingent coupon notes due Nov. 15, 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 5.5% if each index’s closing level is greater than or equal to 65% of its initial level on the observation date for that quarter.
Beginning in November 2018, the notes are callable at par on any coupon payment date.
The payout at maturity will be par plus the final coupon, if any, unless either index declines by more than 35%, 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.
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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: | $829,000
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| Maturity: | Nov. 15, 2022
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| Coupon: | 5.5%, payable quarterly if each index’s closing level is greater than or equal to 65% of initial level on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par plus final coupon, if any, unless if either index declines by more than 35%, in which case 1% loss for every 1% that lesser-performing index declines from initial level
|
| Call option: | Beginning in November 2018, notes are callable at par on any coupon payment date
|
| Initial levels: | 1,475.275 for Russell, 2,582.30 for S&P
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| Pricing date: | Nov. 10
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| Settlement date: | Nov. 15
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| Underwriter: | Goldman Sachs & Co.
|
| Fees: | 4.975%
|
| Cusip: | 40054LYH1
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