Published on 2/23/2018 in the Prospect News Structured Products Daily.
New Issue: GS Finance prices $3 million autocallable buffered notes linked to Russell 2000
By Wendy Van Sickle
Columbus, Ohio, Feb. 23 – GS Finance Corp. priced $3 million of 0% autocallable buffered notes due Feb. 24, 2021 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be guaranteed by Goldman Sachs Group, Inc.
The notes will be automatically called at par plus a call premium if the index closes at or above the initial index level on either of two call observation dates. The call premium will be 9.696% for the first call observation date, Aug. 6, 2018, and 17.9% for the second call observation date, July 5, 2019.
If the notes are not called and the index return is zero or positive, the payout at maturity will be par plus a fixed return of 24%. Investors will receive par if the index declines by 10% or less and will lose 1.1111% for every 1% that it declines beyond 10%.
Goldman Sachs & Co. is the underwriter.
| Issuer: | Goldman Sachs Group, Inc.
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| Issue: | Autocallable buffered index-linked notes
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| Underlying index: | Russell 2000
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| Amount: | $3 million
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| Maturity: | Feb. 24, 2021
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| Coupon: | 0%
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| Price: | Par of $1,000
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| Payout at maturity: | If index return is zero or positive, $1,240 per note; par if index declines by 10% or less; 1.1111% loss for every 1% drop beyond 10%
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| Call: | Automatically at par plus premium if index closes at or above initial index level on either of two call observation dates; premium is 8.667% if called on March 20, 2019, and 16% if called on Feb. 20, 2020
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| Initial level: | 1,529.992
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| Pricing date: | Feb. 20
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| Settlement date: | Feb. 27
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| Agent: | Goldman, Sachs & Co.
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| Fees: | 2.095%
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| Cusip: | 40055ALP0
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