Published on 3/8/2018 in the Prospect News Structured Products Daily.
New Issue: Goldman prices $3 million 7.5% contingent income callables on Russell
By Susanna Moon
Chicago, March 8 – GS Finance Corp. priced $3 million of contingent income callable securities due Feb. 22, 2028 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 7.5% if the index closes at or above its 75% coupon barrier on the determination date that quarter.
The notes are callable at par on any interest payment date after one year.
The payout at maturity will be par unless the index finishes below its 60% downside threshold, in which case investors will be fully exposed to any losses.
The notes are guaranteed by Goldman Sachs Group, Inc.
Goldman Sachs & Co. LLC is the agent with distribution through Morgan Stanley Wealth Management.
| Issuer: | GS Finance Corp.
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| Guarantor: | Goldman Sachs Group, Inc.
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| Issue: | Contingent income callable securities
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| Underlying index: | Russell 2000
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| Amount: | $2,996,000
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| Maturity: | Feb. 22, 2028
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| Coupon: | 7.5% annualized, payable quarterly if index closes at or above 75% coupon barrier on determination date for that quarter
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| Price: | Par
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| Payout at maturity: | If index finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline
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| Call option: | At par on any interest payment date from Feb. 22, 2019 to Nov. 19, 2027
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| Initial level: | 1,543.551
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| Coupon barrier: | 1,157.66325, 75% of initial level
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| Downside threshold: | 926.1306, 60% of initial level
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| Pricing date: | Feb. 16
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| Settlement date: | Feb. 22
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| Agent: | Goldman Sachs & Co. LLC with Morgan Stanley Wealth Management as a distributor
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| Fees: | 3.95%
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| Cusip: | 40055AHB6
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