Published on 10/11/2019 in the Prospect News Structured Products Daily.
New Issue: GS Finance sells $2.38 million trigger callable contingent yield notes on three indexes
By Sarah Lizee
Olympia, Wash., Oct. 11 – GS Finance Corp. priced $2.38 million of trigger callable contingent yield notes due Oct. 9, 2029 linked to the least performing of the Euro Stoxx 50 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at the rate of 10.8% 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.
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 S&P 500 index
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Amount: | $2,375,000
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Maturity: | Oct. 9, 2029
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Coupon: | 10.8% 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
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Initial levels: | 3,417.37 for Stoxx, 1,486.347 for Russell and 2,910.63 for S&P
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Coupon barriers: | 2,392.159 for Stoxx, 1,040.443 for Russell and 2,037.441 for S&P, or 70% of initial levels
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Downside thresholds: | 1,708.685 for Stoxx, 743.174 for Russell and 1,455.315 for S&P, or 50% of initial levels
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Trade date: | Oct. 4
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Settlement date: | Oct. 9
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Underwriter: | Goldman Sachs & Co. LLC
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Selling agent: | UBS Financial Services Inc.
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Fees: | 1.45%
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Cusip: | 36258L650
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