Published on 9/30/2016 in the Prospect News Structured Products Daily.
New Issue: GS Finance prices $8.14 million trigger autocallables linked to Euro Stoxx, S&P
By Angela McDaniels
Tacoma, Wash., Sept. 30 – GS Finance Corp. priced $8.14 million of trigger autocallable contingent yield notes due Oct. 3, 2019 linked to the lesser performing of the Euro Stoxx 50 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 will pay a contingent coupon at the rate of 8.35% per year if each index closes at or above its coupon barrier, 70% of its initial level, on the observation date for that quarter.
Beginning March 28, 2017, the notes will be automatically called at par of $10 if each index closes at or above its initial level on any quarterly observation date.
If the notes are not called and the final level of the lesser-performing index is greater than or equal to its downside threshold, 70% of its initial level, the payout at maturity will be par plus the final coupon. Otherwise, investors will lose 1% for every 1% that the lesser-performing index’s final level is less than its initial level.
Goldman Sachs & Co. is the underwriter.
| Issuer: | GS Finance Corp.
|
| Guarantor: | Goldman Sachs Group, Inc.
|
| Issue: | Trigger autocallable contingent yield notes
|
| Underlying indexes: | Euro Stoxx 50 and S&P 500
|
| Amount: | $8,136,650
|
| Maturity: | Oct. 3, 2019
|
| Coupon: | 8.35% per year, payable quarterly if each index closes at or above coupon barrier on observation date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | If notes are not called and final level of lesser-performing index is greater than or equal to downside threshold, par plus final coupon; otherwise, 1% loss for every 1% that lesser-performing index’s final level is less than initial level
|
| Call: | Beginning March 28, 2017, automatically called at par if each index closes at or above initial level on any quarterly observation date
|
| Initial index levels: | 2,171.37 for S&P 500 and 2,991.11 for Euro Stoxx 50
|
| Coupon barriers: | 1,519.96 for S&P 500 and 2,093.78 for Euro Stoxx 50; 70% of initial levels
|
| Downside thresholds: | 1,519.96 for S&P 500 and 2,093.78 for Euro Stoxx 50; 70% of initial levels
|
| Pricing date: | Sept. 28
|
| Settlement date: | Sept. 30
|
| Underwriter: | Goldman Sachs & Co.
|
| Fees: | 2.25%
|
| Cusip: | 36250Y734
|
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