The Goldman Sachs Group, Inc. (GS, Financial) has announced the issuance of its 6.850% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series Z, with a liquidation preference of $25,000 per share. This development was formalized through the filing of a Certificate of Designations with the Secretary of State of Delaware on January 21, 2025.
The introduction of the Series Z Preferred Stock imposes certain restrictions on Goldman Sachs' ability to declare or pay dividends on, or purchase, redeem, or otherwise acquire, shares of its common stock. These restrictions will be activated if the company fails to pay dividends on the Series Z Preferred Stock. The terms of these restrictions are detailed in the Certificate of Designations, which is part of the company's recent Form 8-K filing.
Additionally, Goldman Sachs has filed exhibits related to the offering, issuance, and sale of depositary shares representing interests in the Series Z Preferred Stock under its Registration Statement on Form S-3. This strategic move is part of Goldman Sachs' ongoing efforts to manage its capital structure and enhance shareholder value.
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