Published on 10/31/2018 in the Prospect News Structured Products Daily.
New Issue: GS Finance sells $18.53 million contingent income callable notes on indexes
By Sarah Lizee
Olympia, Wash., Oct. 31 – GS Finance Corp. priced $18.53 million of contingent income callable securities due Oct. 29, 2021 linked to the worst performing of the Euro Stoxx 50 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.
Each quarter, the notes pay a contingent coupon at an annual rate of 10.6% if each index closes at or above its coupon threshold level, 75% of its initial index level, on each day during that quarter.
Beginning Jan. 31, 2019, the notes are callable at par on any quarterly determination date other than the final one.
If each index finishes at or above its 65% downside threshold level, the payout at maturity will be par plus the final contingent coupon. If the final level of any index is less than its downside threshold level, investors will be fully exposed to the decline of the least-performing index.
Goldman Sachs & Co. is the underwriter. Morgan Stanley Wealth Management is acting as dealer.
| Issuer: | GS Finance Corp.
|
| Guarantor: | Goldman Sachs Group, Inc.
|
| Issue: | Contingent income callable securities
|
| Underlying indexes: | S&P 500, Russell 2000, Euro Stoxx 50
|
| Amount: | $18,533,000
|
| Maturity: | Oct. 29, 2021
|
| Coupon: | 10.6% per year, payable quarterly if each index closes at or above its downside threshold level on each day during that quarter
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above downside threshold level, par plus final contingent coupon; if final level of any index is less than downside threshold level, full exposure to decline of lowest-performing index
|
| Call option: | Beginning Jan. 31, 2019, at par on any quarterly determination date other than final one
|
| Initial levels: | 2,658.69 for S&P, 1,483.821 for Russell, 3,134.89 for Stoxx
|
| Coupon threshold: | 1,994.0175 for S&P, 1,112.86575 for Russell, 2,351.1675 for Stoxx; 75% of initial levels
|
| Downside threshold: | 1,728.1485 for S&P, 964.48365 for Russell, 2,037.6785 for Stoxx; 65% of initial levels
|
| Trade date: | Oct. 26
|
| Settlement date: | Oct. 31
|
| Underwriter: | Goldman Sachs & Co.
|
| Dealer: | Morgan Stanley Wealth Management
|
| Fees: | 2.595%
|
| Cusip: | 40056EBS6
|
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