By Wendy Van Sickle
Columbus, Ohio, Oct. 25 – GS Finance Corp. priced $454,000 of contingent income callable securities due Oct. 23, 2025 linked to the Russell 2000 index, according to a 424B2 with the Securities and Exchange Commission.
The notes are guaranteed by Goldman Sachs Group, Inc.
Each quarter, the notes pay a contingent coupon at the rate of 6.8% per year if the index closes at or above its coupon threshold level, 75% of its initial level, on the determination date for that quarter.
Beginning April 2, 2019, the notes will be callable at par on any quarterly coupon payment date other than the final one.
If the index finishes at or above its downside threshold level, 60% of its initial level, the payout at maturity will be par plus the final contingent coupon, if any. If the final index level is less than the downside threshold level, investors will be fully exposed to the index’s decline from its initial level.
Goldman Sachs & Co. LLC is the underwriter. Morgan Stanley Wealth Management is acting as dealer.
| Issuer: | GS Finance Corp.
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| Guarantor: | Goldman Sachs Group, Inc.
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| Issue: | Contingent income callable securities
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| Underlying index: | Russell 2000
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| Amount: | $454,000
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| Maturity: | Oct. 23, 2025
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| Coupon: | 6.8% per year, payable each quarter that index closes at or above its coupon threshold level on the determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If the index finishes at or above its downside threshold level, par plus the final contingent coupon, if any; if the final index level is less than the downside threshold level, investors will be fully exposed to the index’s decline from its initial level
|
| Initial level: | 1,560.752
|
| Coupon threshold: | 1,170.564, 75% of initial level
|
| Downside threshold: | 936.4512, 60% of initial level
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| Pricing date: | Oct. 18
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| Settlement date: | Oct. 23
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| Underwriter: | Goldman Sachs & Co. LLC
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| Dealer: | Morgan Stanley Wealth Management
|
| Fees: | 3.9%
|
| Cusip: | 40056E2M9
|
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