Published on 10/9/2019 in the Prospect News Structured Products Daily.
New Issue: GS Finance sells $11.5 million trigger callable contingent yield notes on three indexes
By Wendy Van Sickle
Columbus, Ohio, Oct. 9 – GS Finance Corp. priced $11.5 million of trigger callable contingent yield notes due Oct. 5, 2029 linked to the least performing of the Euro Stoxx 50 index, the Russell 2000 index and the MSCI Emerging Markets 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% per year if each index closes at or above its coupon barrier, 70% of its initial level, on the determination date for that quarter.
The notes are redeemable in whole but not in part at par of $10 plus the coupon on any quarterly observation date after six months.
If the notes are not called and each index finishes at or above its downside threshold, 50% of its initial level, the payout at maturity will be par plus any coupon due. Otherwise, investors will lose 1% for every 1% that the least-performing index’s final level is below its initial level.
The notes are guaranteed by Goldman Sachs Group, Inc.
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: | Euro Stoxx 50 index, Russell 2000 index and MSCI Emerging Markets index
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| Amount: | $11,501,000
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| Maturity: | Oct. 5, 2029
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| Coupon: | 9% per year, payable quarterly if each index closes at or above its coupon barrier on determination date for 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 plus any coupon due; 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 plus any coupon on any quarterly observation date after six months
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| Initial levels: | 3,417.37 for Stoxx, 1,486.347 for Russell and 992.28 for MSCI Emerging Markets
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| Coupon barriers: | 2,392.159 for Stoxx, 1,040.443 for Russell and 694.596 for MSCI Emerging Markets, or 70% of initial levels
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| Downside thresholds: | 1,708.685 for Stoxx, 743.174 for Russell and 496.14 for MSCI Emerging Markets, or 50% of initial levels
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| Trade date: | Oct. 3
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| Settlement date: | Oct. 8
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| Underwriter: | Goldman Sachs & Co. LLC
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| Selling agent: | UBS Financial Services Inc.
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| Fees: | 3.87%
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| Cusip: | 36258L635
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