8-KExhibits & Filings

GOLDMAN SACHS GROUP INC 8-K Report, Exhibit Filing (Jun 23, 2011)

Filed June 23, 2011For Securities:GSGS-PAGS-PCGS-PDGSCE

Summary

This 8-K filing from Goldman Sachs Group, Inc. (GS), dated June 23, 2011, announces the issuance of new debt securities under its existing automatic shelf registration statement. Specifically, the company has issued $3,200,000 in Leveraged Equity-Linked Notes due 2013, linked to the common stock of International Business Machines Corporation, and $31,000,000 in Callable Step-Up Fixed Rate Notes due 2026. For investors, this filing indicates Goldman Sachs' ongoing activity in debt capital markets to fund its operations and potentially engage in various financial strategies. The nature of the "Leveraged Equity-Linked Notes" suggests a product offering with a return tied to the performance of IBM's stock, potentially offering investors exposure to equity upside with a structured debt component. The "Callable Step-Up Fixed Rate Notes" represent a more traditional fixed-income instrument with the added feature of being callable by the issuer and having increasing interest rates over time.

Key Highlights

  • 1Goldman Sachs Group, Inc. announced the issuance of new debt securities on June 23, 2011.
  • 2The issuance occurred under the company's automatic shelf registration statement on Form S-3.
  • 3Two types of debt securities were issued: Leveraged Equity-Linked Notes and Callable Step-Up Fixed Rate Notes.
  • 4The Leveraged Equity-Linked Notes total $3,200,000 and are due in 2013, linked to IBM's common stock.
  • 5The Callable Step-Up Fixed Rate Notes total $31,000,000 and are due in 2026.
  • 6The filing includes legal opinions and consents from Sullivan & Cromwell LLP regarding the debt issuance.

Frequently Asked Questions

This 8-K filing serves to report the issuance of new debt securities by Goldman Sachs Group, Inc. under its existing shelf registration statement. It provides details about the types and amounts of the debt offerings.

The Leveraged Equity-Linked Notes are a type of debt security where the return to the investor is linked to the performance of an underlying equity, in this case, the common stock of International Business Machines Corporation. These notes have a maturity of 2013.

These are fixed-income debt securities with a maturity of 2026. The term 'Callable' means Goldman Sachs has the right to redeem these notes before their maturity date. 'Step-Up Fixed Rate' indicates that the interest rate on these notes is structured to increase over the life of the security.

Filing under a Form S-3, particularly an automatic shelf registration, indicates that Goldman Sachs is an established public company eligible to "take-down" securities offerings from an already effective registration statement. This allows for faster and more efficient issuance of new securities compared to filing a full registration statement for each offering.