Goldman accepts $1 billion of two note series in oversubscribed tender

By Susanna Moon

Chicago, May 23 – Goldman Sachs Group, Inc. said investors had tendered $807,241,000 of its 6.45% subordinated notes due 2036 and $408,139,000 of its 5.95% subordinated notes due 2027 as of 5 p.m. ET on May 22, the early tender date.

The issuer began tendering for up to $750 million principal amount of three series of notes on May 9. The notes are as follows, listed in order of priority acceptance levels:

• $1.5 billion outstanding 6.45% subordinated notes due 2036;

• $1 billion 5.95% subordinated notes due 2027; and

• $5,545,000,000 6.75% subordinated notes due 2037.

Goldman Sachs will purchase $1 billion principal amount of the 2036 notes and the 2027 notes and terminated the offer for the 2037 notes, according to an 8-K filing with the Securities and Exchange Commission.

The tender offer had been set to end at 11:59 p.m. ET on June 6, with settlement following on June 8, but the offer has been oversubscribed as of the early deadline.

Tendered notes may no longer be withdrawn as of the early deadline.

Pricing will be set using a reference security plus a fixed spread for a hypothetical purchase price for each $1,000 principal amount as follows:

• For 6.45% notes, the 3% U.S. Treasury due Feb. 15, 2047 plus 145 basis points for a hypothetical total price of $1,250.64; and

• For 5.95% notes, the 2.25% U.S. Treasury due Feb. 15, 2027 plus 135 bps for a hypothetical total price of $1,177.32.

The total amount will include an early tender payment of $50.00 per $1,000 principal amount of notes tendered by the early deadline.

Holders will also receive accrued interest to but excluding the settlement date.

Goldman Sachs & Co. LLC (800 828-3182 or 212 357-1039) is the dealer manager. Global Bondholder Services Corp. (866 470-3800, 212 430-3774 or contact@gbsc-usa.com) is the information agent and depositary.

Goldman Sachs is a New York-based investment bank.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.