8-KShareholder MattersCorporate ChangesExhibits & Filings

GOLDMAN SACHS GROUP INC 8-K Report, Rights Modification (Apr 26, 2021)

Filed April 26, 2021For Securities:GSGS-PAGS-PCGS-PDGSCE

Summary

Goldman Sachs Group Inc. (GS) has filed an 8-K to report the establishment and terms of its Series T Preferred Stock. This filing details the creation of the 3.80% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series T, with a liquidation preference of $25,000 per share. The terms of this new preferred stock are set forth in a Certificate of Designations filed with the Delaware Secretary of State.

Key Highlights

  • 1Establishment of Series T Preferred Stock: Goldman Sachs has formally established a new class of preferred stock.
  • 2Specific Coupon Rate: The Series T Preferred Stock carries a fixed-rate of 3.80% initially, which is subject to reset.
  • 3Non-Cumulative Dividends: Dividends on this preferred stock are non-cumulative, meaning missed payments are not carried forward.
  • 4Significant Liquidation Preference: Each share of Series T Preferred Stock has a substantial liquidation preference of $25,000.
  • 5Restrictions on Common Stock Dividends/Repurchases: The issuance of Series T Preferred Stock imposes restrictions on GS's ability to pay common stock dividends or repurchase common stock if preferred dividends are missed.
  • 6Associated Depositary Shares: The filing mentions the offering and issuance of depositary shares representing interests in the Series T Preferred Stock.
  • 7Regulatory Filings: The terms are detailed in a Certificate of Designations filed with Delaware and related exhibits including legal opinions.

Frequently Asked Questions

The Series T Preferred Stock is a new class of stock issued by Goldman Sachs Group Inc. with a stated dividend rate of 3.80% that is fixed-rate reset and non-cumulative. It has a liquidation preference of $25,000 per share.

The primary implication for common stockholders is that if Goldman Sachs fails to pay dividends on the Series T Preferred Stock, its ability to declare or pay dividends on, or repurchase its common stock will be restricted. This prioritizes preferred stockholders' dividend rights over common stockholders' distributions or buybacks in the event of financial strain.

The Certificate of Designations establishing the terms of the Series T Preferred Stock was filed on April 22, 2021.

Detailed terms are available in the Certificate of Designations filed as Exhibit 3.1 to this 8-K filing, which is incorporated by reference.