By Angela McDaniels
Tacoma, Wash., Feb. 29 – GS Finance Corp. priced $9.42 million of callable contingent coupon notes due Feb. 28, 2020 linked to the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Goldman Sachs Group, Inc. guarantees the notes.
Each quarter, the notes pay a contingent coupon at the rate of 7.7% per year if each index’s closing level is greater than or equal to 60% of its initial level on the determination date for that quarter.
Beginning Feb. 28, 2017, the notes will be callable at par plus the contingent coupon on any interest payment date.
If the notes have not been called and the return of each index is greater than or equal to negative 40%, the payout maturity will be par plus the contingent coupon. If the return of either index is less than negative 40%, investors will be fully exposed to the decline of the lesser-performing index.
Goldman Sachs & Co. is the underwriter.
| Issuer: | GS Finance Corp.
|
| Guarantor: | Goldman Sachs Group, Inc.
|
| Issue: | Callable contingent coupon notes
|
| Underlying indexes: | Russell 2000 and S&P 500
|
| Amount: | $9,416,000
|
| Maturity: | Feb. 28, 2020
|
| Coupon: | Each quarter, notes pay contingent coupon at rate of 7.7% per year if each index’s closing level is greater than or equal to 60% of initial level on determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If return of each index is greater than or equal to negative 40%, par plus contingent coupon; if return of either index is less than negative 40%, full exposure to decline of lesser-performing index
|
| Call: | Beginning Feb. 28, 2017, notes will be callable at par plus contingent coupon on any interest payment date
|
| Initial level: | 1,951.70 for S&P 500 and 1,031.576 for Russell 2000
|
| Pricing date: | Feb. 25
|
| Settlement date: | Feb. 29
|
| Underwriter: | Goldman Sachs & Co.
|
| Fees: | 3.5%
|
| Cusip: | 40054K2R6
|
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