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Goldman-linked note tied to Strategy’s MSTR shares heads to low payout
With MSTR closing far below the note’s starting level, the filing indicates a downside payment of about $217 per $1,000 note at the July 29 maturity.
Investors in a Goldman Sachs note linked to Strategy’s MSTR shares are on track to receive about $217 back per $1,000 note at maturity on July 29, according to CryptoSlate, based on MSTR’s July 24 closing price.
CryptoSlate reports that Goldman Sachs & Co. LLC still controls the final calculation and can postpone the date or adjust terms, but the MSTR close pushed the note deep into the downside formula. The filing implies a principal loss of roughly 78.3%, which corresponds to an indicated payment of $217.36 using the July 24 close of $91.67.
The pricing supplement sets MSTR’s starting price at $421.74 and a threshold at 80% of that level, $337.392. Because the shares closed well below both the $421.74 starting point and the $337.392 threshold, the note is expected to be priced off MSTR’s full decline from the starting price, with no loss cap after a barrier breach.
CryptoSlate also notes that the final supplement lists $660,000 in original aggregate face amount and that the document does not disclose how much principal remained outstanding at maturity, leaving total investor losses across the offering unclear. Wells Fargo Securities handled distribution, and Wells Fargo Advisors was named as a potential resale channel.