8-KExhibits & Filings

GOLDMAN SACHS GROUP INC 8-K Report, Exhibit Filing (Mar 9, 2012)

Filed March 9, 2012For Securities:GSGS-PAGS-PCGS-PDGSCE

Summary

Goldman Sachs Group Inc. (GS) filed an 8-K on March 8, 2012, reporting on the issuance of new securities on March 9, 2012. This filing primarily details the structure and documentation surrounding a significant debt offering through a trust. Specifically, the company, through Murray Street Investment Trust I, issued $1.75 billion in Senior Guaranteed Trust Securities due 2017, which are guaranteed by Goldman Sachs. Concurrently, Goldman Sachs issued $1.75 billion in Junior Subordinated Notes due 2017. This transaction effectively represents a securitization strategy for Goldman Sachs, allowing them to raise substantial capital through debt instruments. The filing includes the key legal agreements governing these issuances, such as the Distribution Agreement, Supplemental Indenture, Guarantee Agreement, and Declaration of Trust. Investors in these securities are primarily exposed to the creditworthiness of Goldman Sachs.

Key Highlights

  • 1Goldman Sachs Group Inc. (GS) engaged in a debt issuance with a total value of approximately $3.5 billion.
  • 2The issuance involved the creation of Murray Street Investment Trust I, which issued Senior Guaranteed Trust Securities due 2017.
  • 3Goldman Sachs provided a senior guarantee for the Trust Securities, indicating its direct credit support.
  • 4Goldman Sachs also directly issued its own Series MS-1 Remarketed 4.647% Junior Subordinated Notes due 2017.
  • 5The debt offerings were conducted under the company's automatic shelf registration statement on Form S-3.
  • 6Key legal documentation, including distribution agreements, indentures, guarantee agreements, and declarations of trust, were filed as exhibits.
  • 7The event date for these issuances was March 5, 2012, with the filing occurring on March 8, 2012, and the securities issuance on March 9, 2012.

Frequently Asked Questions

The primary purpose of this 8-K filing was to report on the issuance of new securities by Goldman Sachs Group Inc. and a related trust (Murray Street Investment Trust I) on March 9, 2012. It provides information on the structure of the issuance and files the related legal documentation.

The issuance consisted of $1,750,010,000 in aggregate liquidation amount of Senior Guaranteed Trust Securities due 2017 issued by Murray Street Investment Trust I, guaranteed by Goldman Sachs. Additionally, Goldman Sachs issued $1,750,010,000 in aggregate principal amount of its Series MS-1 Remarketed 4.647% Junior Subordinated Notes due 2017.

The guarantee from Goldman Sachs on the Senior Guaranteed Trust Securities means that Goldman Sachs is obligated to make payments on these securities if the issuing trust (Murray Street Investment Trust I) is unable to do so. This makes the Trust Securities effectively senior debt obligations of Goldman Sachs.

This issuance represents a method for Goldman Sachs to raise capital through debt. The structure involving a trust and guaranteed securities, alongside directly issued subordinated notes, is a form of securitization or structured finance that allows the company to diversify its funding sources and potentially access capital markets at favorable terms.