Goldman Sachs notes to pay 22 cents on the dollar at maturity

Investors who invested 1000 dollars in a GS Finance note linked to Strategy's MSTR shares are expected to receive about 217.36 dollars at its maturity on July 29. MSTR's closing price on July 24 pushed the note into a downside formula, indicating a loss of approximately 783 dollars, or 78.3%, of the principal. The final calculation is controlled by Goldman Sachs & Co. LLC, which can adjust terms or postpone the maturity date. The note, issued by GS Finance and backed by The Goldman Sachs Group, Inc., ties payouts to Strategy's share price, while payment responsibility lies with GS Finance and Goldman. Wells Fargo Securities managed distribution, with Wells Fargo Advisors as a potential resale channel. The SEC-filed pricing supplement set MSTR's starting price at 421.74 dollars and a threshold at 337.392 dollars. A closing price at or above the threshold would have yielded 1417 dollars, including a 41.7% contingent gain. However, the closing price on July 24 was 91.67 dollars, significantly below both the starting level and the threshold. Under the downside formula, the maturity payment is calculated as 1000 dollars plus 1000 dollars multiplied by MSTR's return from the starting price. The indicated payment based on the closing price is 217.36 dollars. The final supplement recorded an aggregate face amount of 660000 dollars but did not specify the outstanding principal at maturity. Without this information, only the holder-level result per 1000 dollar note is available, estimating a return of about 22 cents on the dollar.