Published on 5/10/2018 in the Prospect News Structured Products Daily.
New Issue: GS Finance sells $903,000 callable contingent coupon notes on three indexes
By Wendy Van Sickle
Columbus, Ohio, May 10 – GS Finance Corp. priced $903,000 of callable contingent coupon notes due May 8, 2028 linked to the worse performing of the Dow Jones industrial average, the 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 8% if each index closes at or above 70% of its initial level on the observation date for that quarter.
The notes are callable at par of $1,000 on any contingent coupon payment date after one year.
The payout at maturity will be par plus the final coupon payment, if any, unless any index finishes below 40% of its initial level, in which case investors will lose 1% for each 1% decline of the least-performing index 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: | Dow Jones industrial average, Russell 2000 and S&P 500
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| Amount: | $903,000
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| Maturity: | May 8, 2028
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| Coupon: | 8%, payable quarterly if each index closes at or above 70% of initial levels on determination date
|
| Price: | Par
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| Payout at maturity: | Par plus final coupon, if any, unless any index declines by more than 40%, in which case 1% loss for each 1% decline of least-performing index from initial level
|
| Call option: | At par on any interest payment date after one year
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| Initial levels: | 23,930.15 for Stoxx, 1,546.558 for Russell 2000 and 2,629.73 for S&P
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| Pricing date: | April 2
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| Settlement date: | May 8
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| Underwriter: | Goldman, Sachs & Co.
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| Fees: | 1.725%
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| Cusip: | 40055AZ91
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