Published on 1/19/2018 in the Prospect News Structured Products Daily.
New Issue: GS Finance sells $40,000 autocallable contingent coupon notes tied to indexes
By Devika Patel
Knoxville, Tenn., Jan. 19 – GS Finance Corp. priced $40,000 of autocallable contingent coupon notes due July 19, 2019 linked to the S&P 500 index, the Euro Stoxx 50 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.
The notes will pay a contingent quarterly coupon of 10% per annum if each index closes at or above its 70% coupon trigger level on the determination date for that quarter.
Beginning July 12, 2018, the notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any quarterly review date.
The payout at maturity will be par plus the final coupon, if any, unless any index closes below its 70% trigger level during the life of the notes and any index finishes below its initial level, in which case investors will lose 1% for each 1% decline of the worst performing index but also receive a contingent coupon if applicable.
Goldman Sachs & Co. is the agent.
| Issuer: | GS Finance Corp.
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| Guarantor: | Goldman Sachs Group, Inc.
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| Issue: | Autocallable contingent coupon notes
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| Underlying indexes: | S&P 500, Euro Stoxx 50 and Russell 2000
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| Amount: | $40,000
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| Maturity: | July 19, 2019
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| Contingent coupon: | Contingent quarterly coupon of 10% if each component closes at or above 70% coupon barrier level on the determination date for that quarter
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| Price: | Par
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| Payout at maturity: | Par plus contingent coupon, if any, unless any index closes below its 70% trigger level during the life of the notes and any index finishes below its initial level, in which case 1% loss for each 1% decline of worst-performing index plus contingent coupon if applicable
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| Call: | Automatically at par plus contingent coupon if each index closes at or above initial level on any quarterly determination date from July 12, 2018 onward
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| Initial index levels: | 2,786.24 for S&P 500, 3,612.61 for Euro Stoxx and 1,591.972 for Russell 2000
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| Coupon barrier levels: | 1,950.368 for S&P 500, 2,528.827 for Euro Stoxx and 1,114.3804 for Russell 2000; 70% of initial levels
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| Trigger levels: | 1,950.368 for S&P 500, 2,528.827 for Euro Stoxx and 1,114.3804 for Russell 2000; 70% of initial levels
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| Pricing date: | Jan. 12
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| Settlement date: | Jan. 18
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| Agent: | Goldman, Sachs & Co.
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| Fees: | 0.65%
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| Cusip: | 40055ACD7
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