Published on 7/10/2019 in the Prospect News Structured Products Daily.
New Issue: GS Finance prices $5 million trigger callable contingent yield notes on indexes
By Wendy Van Sickle
Columbus, Ohio, July 10 – GS Finance Corp. priced $5 million of trigger callable contingent yield notes due Jan. 6, 2023 linked to the least performing of the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 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 the rate of 9.1% per year if each index’s closing level remains at or above its coupon barrier, 70% of its initial level, on each day during that quarter.
The notes are redeemable at par of $10 on any quarterly coupon payment date.
If the notes are not called and each index finishes at or above its 55% downside threshold, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the least-performing index’s final level is below its initial level.
Goldman Sachs & Co. LLC is the underwriter. UBS Financial Services Inc. is acting as selling agent.
| Issuer: | GS Finance Corp.
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| Guarantor: | Goldman Sachs Group, Inc.
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| Issue: | Trigger callable contingent yield notes
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| Underlying indexes: | S&P 500, Russell 2000 and Euro Stoxx 50
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| Amount: | $5 million
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| Maturity: | Jan. 6, 2023
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| Coupon: | 9.1% per year, payable quarterly if each index closes at or above its coupon barrier on each day during that quarter
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| Price: | Par of $10
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| Payout at maturity: | If each index finishes at or above downside threshold, par; otherwise, 1% loss for every 1% that least-performing index’s final level is below initial level
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| Call option: | At par on any quarterly coupon payment date
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| Initial levels: | 3,473.69 for Stoxx, 1,566.572 for Russell 2000 and 2,941.76 for S&P 500
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| Coupon barriers: | 2,431.583 for Stoxx, 1,096.6 for Russell 2000 and 2,059.232 for S&P 500, or 70% of initial levels
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| Downside thresholds: | 1,910.53 for Stoxx, 861.615 for Russell 2000 and 1,617.968 for S&P 500, or 55% of initial levels
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| Pricing date: | July 1
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| Settlement date: | July 5
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| Underwriter: | Goldman Sachs & Co. LLC
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| Selling agent: | UBS Financial Services Inc.
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| Fees: | 1.25%
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| Cusip: | 36257W210
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