Published on 11/9/2018 in the Prospect News Structured Products Daily.
New Issue: Goldman prices $2.03 million 7%-15% contingent coupon callables tied to Russell, S&P
By Susanna Moon
Chicago, Nov. 9 – GS Finance Corp. priced $2.03 million of callable contingent coupon notes due Oct. 31, 2028 linked to the lesser performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate if each index closes at or above its 75% coupon barrier on the observation date for that quarter. The contingent coupon will be 7% for the first 20 payment dates, 9% for the next 12 dates and 15% for the final eight dates.
The notes are callable at par on any review date after one year.
The payout at maturity will be par unless either index closes below its 50% trigger level, in which case investors will be fully exposed to any losses of the worse performing index.
The guarantor is Goldman Sachs Group, Inc.
Goldman Sachs & Co. LLC is the agent.
| Issuer: | GS Finance Corp.
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| Guarantor: | Goldman Sachs Group, Inc.
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| Issue: | Callable contingent coupon notes
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| Underlying indexes: | S&P 500, Russell 2000
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| Amount: | $2,033,000
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| Maturity: | Oct. 31, 2028
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| Coupon: | 7% annualized for the first 20 payment dates, 9% for the next 12 dates and 15% for the final eight dates, payable quarterly if each index closes at or above 75% coupon barrier on review date for that quarter
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above 50% trigger level, par; otherwise, 1% loss for each 1% decline of worse performing index
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| Call option: | At par on any quarterly call review date from October 2019 through July 2028
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| Initial levels: | 2,641.25 for S&P, 1,477.306 for Russell
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| Coupon barrier: | 75% of initial levels
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| Trigger levels: | 50% of initial levels
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| Pricing date: | Oct. 29
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| Settlement date: | Oct. 31
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| Agent: | Goldman Sachs & Co. LLC
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| Fees: | 4.47%
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| Cusip: | 40056E3Z9
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