8-KOther Events

GOLDMAN SACHS GROUP INC 8-K Report, Corporate Update (Oct 18, 2017)

Filed October 18, 2017For Securities:GSGS-PAGS-PCGS-PDGSCE

Summary

The Goldman Sachs Group, Inc. (GS) announced on October 18, 2017, the launch of a proposed public offering for new Series P Fixed-to-Floating Rate Non-Cumulative Preferred Stock. Each depositary share represents a 1/25th interest in this new preferred stock. The primary purpose of this offering, subject to market conditions and successful pricing, is to raise capital that the company intends to use for redeeming a portion or all of its existing 5.95% Non-Cumulative Preferred Stock, Series I. If there are any remaining proceeds, they may be used for general corporate purposes, including the potential redemption of its 6.20% Non-Cumulative Preferred Stock, Series B. Investors should note that the success of this offering and any subsequent redemptions are contingent upon market conditions and the final pricing of the new preferred stock. There is no guarantee that the offering will close or that the company will proceed with redeeming either series of its existing preferred stock, or the extent of any such redemptions. The company indicated that any decision to redeem the Series I Preferred Stock would be announced via press release shortly after the offering's pricing, while any redemption of the Series B Preferred Stock would occur at a later, undetermined date.

Key Highlights

  • 1Goldman Sachs announced a proposed public offering of new Series P Fixed-to-Floating Rate Non-Cumulative Preferred Stock.
  • 2The offering is structured as depositary shares, each representing a fraction of a share of the new preferred stock.
  • 3The primary intended use of proceeds is to redeem outstanding 5.95% Non-Cumulative Preferred Stock, Series I.
  • 4Secondary intended use of remaining proceeds includes potential redemption of 6.20% Non-Cumulative Preferred Stock, Series B.
  • 5The offering is subject to pricing and market conditions, with no assurance of completion or redemption.
  • 6Redemption of Series I Preferred Stock would be announced post-offering pricing, while Series B redemption is for a later, undetermined date.

Frequently Asked Questions

The primary goal of the proposed offering is to raise capital to redeem existing preferred stock, specifically the 5.95% Non-Cumulative Preferred Stock, Series I. Any remaining funds may be used for general corporate purposes, including potentially redeeming the 6.20% Non-Cumulative Preferred Stock, Series B.

No, the redemption is not guaranteed. The entire process, including the pricing and closing of the new offering and any subsequent redemptions, is contingent upon market conditions and the final pricing of the new preferred stock. The company explicitly states there is no assurance these events will occur.

Goldman Sachs intends to announce its decision regarding the redemption of the Series I Preferred Stock by press release shortly after the pricing of the new offering, provided the offering prices and closes.

Any potential redemption of the Series B Preferred Stock, if it were to occur, would not happen until a later time that has not yet been determined.