Goldman Sachs Announces Intention to Delist Two ETNs
Goldman Sachs Announces Intention to Delist GS ConnectTM S&P GSCI® Enhanced Commodity Total Return Strategy Index ETN and Claymore CEF Index-Linked GS ConnectSM ETN
NEW YORK, August 11, 2020 -- The Goldman Sachs Group, Inc. (NYSE: GS) today announced that it plans to delist its GS ConnectTM S&P GSCI® Enhanced Commodity Total Return Strategy Index ETN (ticker: GSC; IIV ticker: GSCIV) (the “GSC ETN”) from NYSE Arca.
GS Finance Corp., a wholly owned subsidiary of The Goldman Sachs Group, Inc., today announced that it plans to delist its Claymore CEF Index-Linked GS ConnectSM ETN (ticker: GCE; IIV ticker: GCEIV) (the “GCE ETN” and, together with the GSC ETN, the “ETNs”) from NYSE Arca.
The relevant issuer of each ETN is proposing to delist from NYSE Arca due to low levels of trading activity in the ETNs.
The GSC ETN was originally issued by The Goldman Sachs Group, Inc. on May 8, 2007 and, currently, approximately $3.49 million in aggregate indicative value of the GSC ETN is held by the public (based on the closing indicative value for August 10, 2020 of $15.29). The GCE ETN was originally issued by GS Finance Corp. on December 11, 2007 and, currently, approximately $1.70 million in aggregate indicative value of the GCE ETN is held by the public (based on the closing indicative value for August 10, 2020 of $14.77).
Delisting is expected to occur at the close of trading on August 31, 2020. Following the delisting, the ETNs will remain outstanding, though they will no longer trade on any national securities exchange. At such point, the ETNs will trade, if at all, on an over-the-counter basis. New issuances of each of the GSC ETN and the GCE ETN have been discontinued (as announced on June 9, 2015 and August 13, 2019, respectively). After the delisting, the secondary market for these ETNs may experience a significant drop in liquidity and ETN holders may not be able to trade or sell them easily.
With respect to each of the ETNs, the ETN holders’ option to require the applicable issuer to redeem the ETNs on a weekly redemption date (subject to the terms and conditions set forth in the prospectus, as amended or supplemented from time to time, relating to such ETN) will not be affected by the delisting. To provide liquidity to those ETN holders who wish to exit their positions in the ETNs, the minimum redemption size for each ETN has been waived, on a permanent and irrevocable basis, effective immediately.
ETN holders could lose a substantial portion and perhaps all of their investment in the ETNs. The market value of an ETN holder’s ETNs may be influenced by many factors that are unpredictable and interrelated in complex ways. It is possible that this announcement and the subsequent delisting of the ETNs may adversely affect the market value and liquidity of the ETNs in the secondary market and may cause the ETNs to trade at a premium or discount in relation to their intraday indicative values. Paying a premium purchase price over the intraday indicative value of the ETN could lead to a loss on the investment even if the index to which the ETN is linked increases in value. In addition, if investors elect to redeem their ETN, any redemption would be at the early redemption amount and would not include any premium above that amount. Neither The Goldman Sachs Group, Inc. nor GS Finance Corp. can predict with certainty what impact, if any, these events will have on the market values or liquidity of the ETNs. Following the delisting, ETN holders may not be able to sell their ETNs or may have to sell their ETNs at a discounted sale price substantially below their intraday indicative value or closing indicative value.
For more information on risks associated with the ETNs, please see the risk factors included in the relevant prospectus, as amended or supplemented from time to time. The prospectuses relating to the ETNs can be accessed on the website of the Securities and Exchange Commission at.www.sec.gov.
The "S&P GSCI" is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”), and has been licensed for use by Goldman Sachs. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Goldman Sachs. The GS Connect™ S&P GSCI® Enhanced Commodity Total Return Strategy Index ETN (“ETN”) is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such ETN nor do they have any liability for any errors, omissions, or interruptions of the S&P GSCI.
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements that involve substantial risks and uncertainties. You can identify these statements by the use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” or “continue” or the negatives thereof or other variations thereon or comparable terminology. You should read statements that contain these words carefully. These statements represent Goldman Sachs’ belief regarding future events that, by their nature, are uncertain and outside of its control. Any forward-looking statement made by us in this press release speaks only as of the date on which we make it. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world.
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