8-KShareholder MattersCorporate ChangesOther Events+1

GOLDMAN SACHS GROUP INC 8-K Report, Rights Modification (Oct 24, 2012)

Filed October 24, 2012For Securities:GSGS-PAGS-PCGS-PDGSCE

Summary

This Form 8-K filing by The Goldman Sachs Group, Inc. (GS) on October 24, 2012, details the establishment and terms of its 5.95% Non-Cumulative Preferred Stock, Series I. This new series of preferred stock, with a liquidation preference of $25,000 per share, carries specific dividend rights and restrictions that could impact the company's ability to pay common stock dividends or repurchase common shares if preferred dividends are not met. Investors should note that the issuance of this Series I Preferred Stock introduces a new layer of capital with priority claims. The company has filed a Certificate of Designations with the Secretary of State of Delaware to formalize these terms. The filing also references related exhibits concerning the offering and issuance of depositary shares representing interests in this preferred stock, indicating an active capital-raising activity by Goldman Sachs.

Key Highlights

  • 1Goldman Sachs has officially established its 5.95% Non-Cumulative Preferred Stock, Series I.
  • 2The Series I Preferred Stock has a liquidation preference of $25,000 per share.
  • 3The company filed a Certificate of Designations with Delaware to outline the terms of the Series I Preferred Stock.
  • 4Restrictions are placed on Goldman Sachs' ability to declare or pay common stock dividends and repurchase common stock if preferred dividends are not paid on the Series I Preferred Stock.
  • 5The filing references exhibits related to depositary shares representing interests in the Series I Preferred Stock, suggesting an ongoing offering.
  • 6The event date reported is October 23, 2012, with the filing made on October 24, 2012.

Frequently Asked Questions

The main purpose of this filing is to officially announce and detail the terms of Goldman Sachs' newly established 5.95% Non-Cumulative Preferred Stock, Series I, including its liquidation preference and dividend terms.

The Series I Preferred Stock introduces a priority claim on the company's earnings. If Goldman Sachs fails to pay dividends on the Series I Preferred Stock, it will be restricted from paying dividends on its common stock or repurchasing common stock. This could impact the availability of capital for common shareholders.

The Series I Preferred Stock has a dividend rate of 5.95% and a liquidation preference of $25,000 per share.

Yes, the filing mentions depositary shares representing interests in the Series I Preferred Stock, indicating that these shares may be offered to investors through depositary arrangements.