Published on 4/16/2014 in the Prospect News Structured Products Daily.
New Issue: Goldman Sachs prices $3 million notes on basket of three currencies
By Toni Weeks
San Luis Obispo, Calif., April 16 - Goldman Sachs Group, Inc. priced $3 million of 0% currency-linked notes due April 28, 2016 tied to a basket of three equally weighted currencies, all relative to the dollar, according to a 424B2 filing with the Securities and Exchange Commission.
The basket components are the Indian rupee, Malaysian ringgit and Mexican peso.
If the basket return is greater than or equal to negative 10%, the payout at maturity will be the greater of the basket return and the threshold settlement amount of $1,120 per $1,000 principal amount of notes, up to a maximum payout of $2,000. If the basket return is less than negative 10%, investors will lose 1.1111% for each 1% decline in the basket beyond 10%.
A currency return will be positive if it takes fewer of the relevant foreign currency to purchase one dollar on the determination date than on the pricing date.
Goldman Sachs & Co. is the underwriter.
| Issuer: | Goldman Sachs Group, Inc.
|
| Issue: | Currency-linked notes
|
| Underlying currencies: | Indian rupee, Malaysian ringgit and Mexican peso, equally weighted and relative to dollar
|
| Amount: | $3 million
|
| Maturity: | April 28, 2016
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If basket return is greater than or equal to negative 10%, greater of the basket return and $1,120 per $1,000 principal amount of notes, up to a maximum of $2,000; if basket return is less than negative 10%, 1.1111% loss for each 1% decline in the basket beyond 10%
|
| Initial exchange rates: | Per U.S. dollar, 60.267 rupees, 3.249 ringgits and 13.0484 pesos
|
| Initial basket level: | 100
|
| Pricing date: | April 14
|
| Settlement date: | April 22
|
| Underwriter: | Goldman Sachs & Co.
|
| Fees: | 1.675%
|
| Cusip: | 38147Q3U8
|
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