8-KOther Events

GOLDMAN SACHS GROUP INC 8-K Report, Corporate Update (Jan 23, 2020)

Filed January 23, 2020For Securities:GSGS-PAGS-PCGS-PDGSCE

Summary

Goldman Sachs Group, Inc. (GS) announced on January 23, 2020, a proposed public offering of new Series S Fixed-Rate Reset Non-Cumulative Preferred Stock, represented by depositary shares. The primary purpose of this offering, subject to market conditions and successful pricing, is to generate proceeds to redeem its outstanding 5.70% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series L. This strategic move indicates a potential shift in Goldman Sachs' capital structure and leverage. Investors should note that the successful completion of the offering and subsequent redemption are not guaranteed and are contingent upon market conditions and the company's decision. The company has filed a preliminary prospectus supplement detailing the offering with the SEC.

Key Highlights

  • 1Goldman Sachs announced a proposed public offering of new Series S Preferred Stock (Depositary Shares).
  • 2The offering is intended to raise capital to redeem all outstanding Series L Preferred Stock (5.70% rate).
  • 3The redemption of Series L Preferred Stock is contingent on the successful pricing and closing of the Series S Preferred Stock offering.
  • 4Both the offering and the potential redemption are subject to market conditions and other considerations.
  • 5There is no assurance that the offering will price and close, or that the redemption will occur.
  • 6A preliminary prospectus supplement for the offering was filed with the SEC on January 23, 2020.

Frequently Asked Questions

The proposed public offering of Depositary Shares, representing Series S Preferred Stock, is intended to raise capital to redeem all of Goldman Sachs' outstanding Series L Preferred Stock.

No, the redemption of Series L Preferred Stock is not guaranteed. It is contingent upon the successful pricing and closing of the proposed offering of Series S Preferred Stock, as well as market conditions and the company's final decision.

The Series L Preferred Stock has a dividend rate of 5.70%.

More details about the offering can be found in the preliminary prospectus supplement filed by Goldman Sachs Group, Inc. with the Securities and Exchange Commission on January 23, 2020.