By Angela McDaniels
Tacoma, Wash., Sept. 6 – GS Finance Corp. priced $1.8 million of contingent income callable securities due Sept. 3, 2021 linked to the lesser performing of the Russell 2000 index and the S&P 500 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 an annual rate of 7.45% if each index closes at or above its downside threshold level, 65% of its initial index level, on each day during that quarter.
Beginning Sept. 6, 2017, the notes are callable at par on any quarterly determination date other than the final one.
If each index finishes at or above its downside threshold level, the payout at maturity will be par plus the final contingent coupon. If the final level of either index is less than its downside threshold level, investors will be fully exposed to the decline of the lesser-performing index.
Goldman Sachs & Co. is the underwriter. Morgan Stanley Wealth Management is acting as dealer.
| Issuer: | GS Finance Corp.
|
| Guarantor: | Goldman Sachs Group, Inc.
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| Issue: | Contingent income callable securities
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| Underlying indexes: | Russell 2000 and S&P 500
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| Amount: | $1,803,000
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| Maturity: | Sept. 3, 2021
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| Coupon: | 7.45% per year, payable quarterly if each index closes at or above its downside threshold level on each day during that quarter
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above downside threshold level, par plus final contingent coupon; if final level of either index is less than downside threshold level, full exposure to decline of lesser-performing index
|
| Call option: | Beginning Sept. 6, 2017, at par on any quarterly determination date other than final one
|
| Initial index levels: | 1,239.907 for Russell 2000 and 2,170.95 for S&P 500
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| Downside threshold: | 805.93955 for Russell 2000 and 1,411.1175 for S&P 500; 65% of initial index levels
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| Pricing date: | Aug. 31
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| Settlement date: | Sept. 6
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| Underwriter: | Goldman Sachs & Co.
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| Dealer: | Morgan Stanley Wealth Management
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| Fees: | 3.3%
|
| Cusip: | 40054KHM1
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