Published on 5/16/2018 in the Prospect News Structured Products Daily.
New Issue: GS Finance sells $11.91 million trigger callable contingent yield notes on three indexes
By Wendy Van Sickle
Columbus, Ohio, May 16 – GS Finance Corp. priced $11.91 million of trigger callable contingent yield notes with daily coupon observation due Nov. 17, 2020 linked to the least performing of the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon if each index closes at or above its coupon barrier, 70% of its initial level, on each day that quarter. The contingent coupon rate is 9.1% per year.
After six months, the notes are callable at par of $10 on each quarterly observation date other than the final one.
If the notes are not called and each index finishes at or above its coupon barrier level, the payout at maturity will be par plus the contingent coupon.
The payout at maturity will be par, unless any index finishes below 70% of its initial level, in which case investors will be fully exposed to the loss of the least performing index.
The notes are guaranteed by Goldman Sachs Group, Inc.
UBS Financial Services Inc. and Goldman Sachs & Co. LLC are the agents.
| Issuer: | GS Finance Corp.
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| Guarantor: | Goldman Sachs Group, Inc.
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| Issue: | Trigger callable contingent yield notes with daily coupon observation
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| Underlying indexes: | S&P 500, Russell 2000 and Euro Stoxx 50
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| Amount: | $11,912,000
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| Maturity: | Nov. 17, 2020
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| Coupon: | 9.1% per year, payable quarterly if each index closes at or above its coupon barrier on each day that quarter
|
| Price: | Par of $10
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| Payout at maturity: | Par, unless any index finishes below 70% of initial level, in which case investors will be fully exposed to loss of the least performing index
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| Call option: | After six months at par on each quarterly observation date other than final one
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| Initial levels: | 1,606.792 for Russell, 3,565.52 for Stoxx and 2,727.72 for S&P 500
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| Coupon barriers: | 1,124.754 for Russell, 2,495.864 for Stoxx and 1,909.404 for S&P 500; 70% of initial levels
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| Pricing date: | May 11
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| Settlement date: | May 16
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| Agents: | UBS Financial Services Inc. and Goldman Sachs & Co. LLC
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| Fees: | 1.675%
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| Cusip: | 36254G606
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