Goldman Sachs Redeems High-Cost Preferred Stock, Capital Securities

Ticker: GSCE · Form: 8-K · Filed: Jan 16, 2024 · CIK: 886982

Goldman Sachs Group INC 8-K Filing Summary
FieldDetail
CompanyGoldman Sachs Group INC (GSCE)
Form Type8-K
Filed DateJan 16, 2024
Risk Levellow
Pages3
Reading Time4 min
Sentimentbullish

Complexity: simple

Sentiment: bullish

Topics: debt-redemption, capital-structure, preferred-stock, financial-condition

TL;DR

**GS is ditching expensive preferred stock, which is good for their bottom line.**

AI Summary

On January 16, 2024, Goldman Sachs Group Inc. filed an 8-K to announce the redemption of several preferred stock and capital securities. Specifically, they are redeeming their 6.375% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series K, and their 5.793% Fixed-to-Floating Rate Normal Automatic Preferred Enhanced Capital Securities. This matters to investors because redeeming these higher-cost securities can reduce Goldman Sachs's financing expenses, potentially boosting future earnings per share and making the stock more attractive.

Why It Matters

This move signals Goldman Sachs is optimizing its capital structure by shedding more expensive financing, which can lead to improved profitability and a stronger balance sheet.

Risk Assessment

Risk Level: low — Redeeming high-cost securities generally reduces financial risk and improves capital efficiency for the company.

Analyst Insight

A smart investor would view this as a positive sign of prudent capital management, potentially leading to improved profitability. It might be worth reviewing Goldman Sachs's upcoming earnings reports for confirmation of reduced financing costs and their impact on net income.

Key Numbers

Key Players & Entities

Forward-Looking Statements

FAQ

What specific securities is Goldman Sachs redeeming as reported in this 8-K?

Goldman Sachs is redeeming its Depositary Shares, each representing 1/1,000th Interest in a Share of 6.375% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series K, and its 5.793% Fixed-to-Floating Rate Normal Automatic Preferred Enhanced Capital Securities of Goldman Sachs Capital II.

What is the earliest event reported date for this 8-K filing?

The earliest event reported date for this 8-K filing is January 16, 2024.

What is the fixed-to-floating rate for the Series K Preferred Stock being redeemed?

The fixed-to-floating rate for the Series K Preferred Stock being redeemed is 6.375%.

What is the fixed-to-floating rate for the Normal Automatic Preferred Enhanced Capital Securities being redeemed?

The fixed-to-floating rate for the Normal Automatic Preferred Enhanced Capital Securities being redeemed is 5.793%.

What is the SEC file number for The Goldman Sachs Group, Inc. as stated in the filing?

The SEC file number for The Goldman Sachs Group, Inc. is 001-14965.

Filing Stats: 879 words · 4 min read · ~3 pages · Grade level 9.6 · Accepted 2024-01-16 07:34:01

Filing Documents

02 Results of Operations and Financial Condition

Item 2.02 Results of Operations and Financial Condition

01 Regulation FD Disclosure

Item 7.01 Regulation FD Disclosure

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits SIGNATURE Exhibit 99.1: PRESS RELEASE Exhibit 99.2: PRESENTATION

02 Results of Operations and Financial Condition

Item 2.02 Results of Operations and Financial Condition. On January 16, 2024, The Goldman Sachs Group, Inc. (Group Inc. and, together with its consolidated subsidiaries, the firm) reported its earnings for the fourth quarter and year ended December 31, 2023. A copy of Group Inc.'s press release containing this information is attached as Exhibit 99.1 to this Report on Form 8-K and is incorporated herein by reference.

01 Regulation FD Disclosure

Item 7.01 Regulation FD Disclosure. On January 16, 2024, at 9:30 a.m. (ET), the firm will hold a conference call to discuss the firm's financial results, outlook and related matters. A copy of the presentation for the conference call is attached as Exhibit 99.2 to this Report on Form 8-K.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits. 99.1 Press release of Group Inc. dated January 16, 2024 containing financial information for its fourth quarter and year ended December 31, 2023. The quotation on page 1 of Exhibit 99.1 and the information under the caption "Annual Highlights" on the following page (Excluded Sections) shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (Exchange Act) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of Group Inc. under the Securities Act of 1933 or the Exchange Act. The information included in Exhibit 99.1, other than in the Excluded Sections, shall be deemed "filed" for purposes of the Exchange Act. 99.2 Presentation of Group Inc. dated January 16, 2024, for the conference call on January 16, 2024. Exhibit 99.2 is being furnished pursuant to Item 7.01 of Form 8-K and the information included therein shall not be deemed "filed" for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of Group Inc. under the Securities Act of 1933 or the Exchange Act. 101 Pursuant to Rule 406 of Regulation S-T, the cover page information is formatted in iXBRL (Inline eXtensible Business Reporting Language). 104 Cover Page Interactive Data File (formatted in iXBRL in Exhibit 101). SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. THE GOLDMAN SACHS GROUP, INC. (Registrant) Date: January 16, 2024 By: /s/ Denis P. Coleman III Name: Denis P. Coleman III Title: Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR

View on Read The Filing