By Susanna Moon
Chicago, March 12 – GS Finance Corp. priced $14.78 million of contingent income callable securities due Feb. 26, 2021 linked to the Bank of America Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8.25% if the stock closes at or above its 75% coupon barrier on the determination date that quarter.
The notes will be called at par if the stock closes at or above its initial level on any of the first 11 coupon determination dates.
The payout at maturity will be par unless the stock finishes below its 75% downside threshold, in which case investors will be fully exposed to any losses.
The notes are guaranteed by Goldman Sachs Group, Inc.
Goldman Sachs & Co. LLC is the agent with distribution through Morgan Stanley Wealth Management.
Issuer: | GS Finance Corp.
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Guarantor: | Goldman Sachs Group, Inc.
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Issue: | Contingent income callable securities
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Underlying stock: | Bank of America Corp. (Symbol: BAC)
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Amount: | $14,776,920
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Maturity: | Feb. 26, 2021
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Coupon: | 8.25% annualized, payable quarterly if stock closes at or above 75% coupon barrier on determination date for that quarter
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Price: | Par of $10.00
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Payout at maturity: | If stock finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline
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Call: | At par if stock closes at or above its initial level on any of the first 11 coupon determination dates
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Initial level: | $32.03
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Downside threshold: | $24.0225, 75% of initial level
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Pricing date: | Feb. 23
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Settlement date: | Feb. 28
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Agent: | Goldman Sachs & Co. LLC with Morgan Stanley Wealth Management as a distributor
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Fees: | 2.675%
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Cusip: | 36254G101
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