Published on 9/9/2019 in the Prospect News Structured Products Daily.
New Issue: GS Finance prices $3.36 million contingent income callable notes linked to indexes
By Sarah Lizee
Olympia, Wash., Sept. 9 – GS Finance Corp. priced $3.36 million of contingent income callable securities due March 5, 2025 linked to the least performing of the MSCI EAFE index, the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at the rate of 9.5% per year if each index closes at or above its coupon barrier, 60% of its initial level, on each trading day during that quarter.
The notes are callable at par on any quarterly coupon payment date other than the final one.
If each index finishes at or above its downside threshold level, 60% of its initial level, the payout at maturity will be par. Otherwise, investors will be fully exposed to decline of the least-performing index from its initial level.
The notes are guaranteed by Goldman Sachs Group Inc.
Goldman Sachs & Co. LLC is the underwriter. Morgan Stanley Wealth Management is a dealer.
| Issuer: | GS Finance Corp.
|
| Guarantor: | Goldman Sachs Group Inc.
|
| Issue: | Contingent income callable securities
|
| Underlying indexes: | MSCI EAFE, S&P 500 and Russell 2000
|
| Amount: | $3,357,000
|
| Maturity: | March 5, 2025
|
| Coupon: | 9.5% per year, payable quarterly if each index closes at or above coupon barrier level on each trading day during that quarter
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above downside threshold level, par; otherwise, full exposure to least-performing index’s decline from initial level
|
| Call option: | Callable at par on any quarterly coupon payment date other than final one
|
| Initial levels: | 2,926.46 for S&P, 1,494.839 for Russell and 1,842.58 for EAFE
|
| Coupon barriers: | 1,755.876 for S&P, 896.9034 for Russell and 1,105.548 for EAFE; 60% of initial levels
|
| Downside thresholds: | 1,755.876 for S&P, 896.9034 for Russell and 1,105.548 for EAFE; 60% of initial levels
|
| Pricing date: | Aug. 30
|
| Settlement date: | Sept. 5
|
| Underwriter: | Goldman Sachs & Co. LLC
|
| Dealer: | Morgan Stanley Wealth Management
|
| Fees: | 2.15%
|
| Cusip: | 40056X5X0
|
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