Published on 10/11/2018 in the Prospect News Structured Products Daily.
New Issue: GS Finance sells $5.63 million trigger callable contingent yield notes on indexes
By Sarah Lizee
Olympia, Wash., Oct. 11 – GS Finance Corp. priced $5.63 million of 0% trigger callable contingent yield notes due April 14, 2022 linked to the Russell 2000 index, the Euro Stoxx 50 index and the S&P 500 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 pay a contingent quarterly coupon at an annual rate of 9.9% if each index closes at or above its coupon barrier, 70% of its initial level, on every day that quarter.
The notes will be callable at par plus any coupon due on any quarterly observation date beginning Jan. 11, 2019.
The payout at maturity will be par plus the final coupon, if any, unless any index finishes below the downside threshold level, 60% of its initial level, in which case investors will lose 1% for every 1% loss of the worst performing index from its initial level.
Goldman Sachs & Co. is the agent with UBS Financial Services Inc. as selling agent.
| Issuer: | GS Finance Corp.
|
| Guarantor: | Goldman Sachs Group, Inc.
|
| Issue: | Trigger callable contingent yield notes
|
| Underlying indexes: | Russell 2000, S&P 500 and Euro Stoxx 50
|
| Amount: | $5,625,000
|
| Maturity: | April 14, 2022
|
| Coupon: | 9.9%, payable quarterly if each index closes at or above coupon barrier every day that quarter
|
| Price: | Par of $10
|
| Call option: | At par plus any coupon on any quarterly observation date beginning Jan. 11, 2019
|
| Payout at maturity: | Par plus final coupon, if any, unless any index closes below downside threshold level, in which case investors will lose 1% for each 1% decline of the worst performing index from initial level
|
| Initial levels: | 2,880.34 for S&P, 1,621.865 for Russell, 3,321.79 for Stoxx
|
| Coupon barriers: | 2,016.238 for S&P, 1,135.306 for Russell and 2,325.253 for Stoxx; 70% of initial levels
|
| Downside thresholds: | 1,728.204 for S&P, 973.119 for Russell and 1,993.074 for Stoxx; 60% of initial levels
|
| Pricing date: | Oct. 9
|
| Settlement date: | Oct. 12
|
| Agent: | Goldman Sachs & Co. with UBS Financial Services Inc. as selling agent
|
| Fees: | 1.5%
|
| Cusip: | 36256M304
|
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