Published on 10/23/2018 in the Prospect News Structured Products Daily.
New Issue: GS Finance sells $993,000 callable contingent coupon notes on indexes
By Sarah Lizee
Olympia, Wash., Oct. 23 – GS Finance Corp. priced $993,000 of callable contingent coupon notes due Oct. 24, 2023 linked to the Nasdaq-100 index, 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.
The notes pay a contingent quarterly coupon at an annual rate of 8.65% if each index closes at or above 70% of its initial level on the observation date.
The notes are callable at par on any coupon payment date after six months.
If the return of each index is greater than or equal to negative 30%, the payout at maturity will be par plus the final coupon. If the return of each index is greater than or equal to negative 40% but the return of any index is less than negative 30%, the payout will be par. If the return of any index is less than negative 40%, investors will lose 1% for each 1% decline of the worst performing index from its initial level.
Goldman Sachs & Co. is the underwriter.
| Issuer: | GS Finance Corp.
|
| Guarantor: | Goldman Sachs Group, Inc.
|
| Issue: | Callable contingent coupon notes
|
| Underlying indexes: | Russell 2000 index, S&P 500 index, Nasdaq-100 index
|
| Amount: | $993,000
|
| Maturity: | Oct. 24, 2023
|
| Coupon: | 8.65% annualized, payable each quarter if each index closes at or above 70% of its initial level on determination date
|
| Price: | Par
|
| Payout at maturity: | If the return of each index is greater than or equal to negative 30%, par plus the final coupon; if the return of each index is greater than or equal to negative 40% but the return of any index is less than negative 30%, par; if the return of any index is less than negative 40%, 1% loss for each 1% decline of the worst performing index from its initial level
|
| Call option: | At par on any coupon payment date after six months
|
| Initial levels: | 1,542.042 for Russell, 2,767.78 for S&P and 3,209.19 for 7,107.233 for Nasdaq-100
|
| Pricing date: | Oct. 19
|
| Settlement date: | Oct. 24
|
| Underwriter: | Goldman Sachs & Co.
|
| Fees: | 1.775%
|
| Cusip: | 40056EBB3
|
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