Published on 4/11/2018 in the Prospect News Structured Products Daily.
New Issue: GS Finance sells $7.74 million callable contingent coupon notes on indexes, ETF
By Wendy Van Sickle
Columbus, Ohio, April 11 – GS Finance Corp. priced $7.74 million of callable contingent coupon notes due April 7, 2022 linked to the worst performing of the iShares MSCI EAFE ETF, Russell 2000 index and the S&P 500 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 9.84% if each asset closes at or above 75% of its initial level on every day that quarter.
The notes are callable at par of $1,000 on any contingent coupon payment date after six months.
The payout at maturity will be par plus the final coupon payment, if any, unless any asset finishes below 60% of its initial level, in which case investors will lose 1% for each 1% decline of the least-performing asset 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 assets: | iShares MSCI EAFE ETF, Russell 2000 index and S&P 500 index
|
| Amount: | $7,738,000
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| Maturity: | April 7, 2022
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| Coupon: | 9.84%, payable quarterly if each asset closes at or above 75% of initial levels on every day that quarter
|
| Price: | Par
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| Payout at maturity: | Par plus final coupon, if any, unless any asset declines by more than 40%, in which case 1% loss for each 1% decline of least-performing asset from initial level
|
| Call option: | At par on any interest payment date after six months
|
| Initial levels: | 1,512.155 for Russell 2000, 2,614.45 for S&P, $69.16 for ETF
|
| Pricing date: | April 3
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| Settlement date: | April 6
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| Underwriter: | Goldman, Sachs & Co.
|
| Fees: | 2.55%
|
| Cusip: | 40055ATQ0
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