Goldman's new 6.375% fixed-to-floating noncumulative preferreds begin trading on NYSE

By Stephanie N. Rotondo

Phoenix, May 1 - The Goldman Sachs Group Inc.'s $700 million of 6.375% $25-par series K fixed-to-floating rate noncumulative perpetual preferred stock listed on the New York Stock Exchange on Thursday.

The deal priced April 21. The ticker symbol is "GSPK."

The preferreds were issued as depositary shares representing a 1/1,000th interest.

Goldman Sachs & Co., BofA Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, RBC Capital Markets, UBS Securities LLC and Wells Fargo Securities LLC were the joint bookrunning managers.

When declared, dividends are payable at a fixed rate on a quarterly basis until May 10, 2024, at which time the dividend will float at Libor plus 282.5 basis points.

The preferreds become redeemable on or after May 10, 2024 at par plus accrued dividends. The bank can also redeem the preferreds in whole within 90 days of a regulatory capital treatment event.

The New York-based firm will use the proceeds to provide additional liquidity and for general corporate purposes.

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