8-K: PPLUS Trust Series GSC-2 Reports August 2026 Distribution

Merrill Lynch Depositor, Inc. reported the August 17, 2026 distribution to holders of PPLUS Trust Certificates Series GSC-2, detailing amounts received from underlying securities and an interest rate swap.

Summary

• This report details the distribution made on August 17, 2026, to holders of PPLUS Trust Certificates Series GSC-2.
• The distribution includes interest payments received by the Trustee from the underlying securities (6.345% Capital Securities due 2034 issued by Goldman Sachs Capital I) and from an Interest Rate Swap.
• Total interest received from underlying securities was $1,110,375.00, with no principal or premium received.
• Interest received from the Interest Rate Swap was $435,256.03, with no principal received.
• The Trustee received no compensation for this period.
• The distribution to certificate holders on this date was $435,256.03 in interest, with no principal or unpaid interest accrued.
• Merrill Lynch International received a net interest payment of $675,118.97 related to the Interest Rate Swap.
• The aggregate principal amount of the underlying securities is $35,000,000 with an interest rate of 6.345%.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral filing, primarily reporting routine distribution information for a trust, with no significant new financial performance or strategic developments.

Positives

• The filing confirms a distribution was made to certificate holders on August 17, 2026.
• Interest payments were received from both the underlying Goldman Sachs Capital I securities and the interest rate swap.
• The principal balance of the certificates remains at $35,000,000 as of August 17, 2026.

Negatives

• No principal or premium was received from the underlying securities.
• The filing does not provide specific details on the performance or financial health of the underlying issuer, Goldman Sachs Capital I, beyond referencing their periodic reports.

Risks

• Reliance on the financial health and performance of The Goldman Sachs Group, Inc. (issuer of the underlying securities) as disclosed in their separate SEC filings.
• Potential for events affecting the underlying securities or issuer that have not yet been publicly disclosed and could impact the value of the certificates.
• The creditworthiness of the underlying securities issuer and guarantor has not been independently investigated by the depositor or trustee.

Future Outlook

The filing does not contain forward-looking statements or guidance. It solely reports on a past distribution event and directs readers to the periodic reports of The Goldman Sachs Group, Inc. for information on the underlying securities.

Management Comments

• The depositor and trustee did not participate in the preparation of the underlying issuer's documents or conduct due diligence on their financial condition or creditworthiness.
• Investors should conduct their own evaluation of the underlying securities issuer and guarantor as they would if investing directly.

Industry Context

StockSavvy.ai notes that this filing is typical for a structured finance vehicle, such as a trust, that holds assets (in this case, Goldman Sachs Capital I securities) and uses derivatives (interest rate swap) to manage cash flows and distribute payments to certificate holders. The reliance on the performance of the underlying issuer's filings is standard practice for such structures.

Comparison to Industry Standards

• The structure of PPLUS Trust Series GSC-2, involving a trust holding corporate debt and an interest rate swap, is a common securitization technique used in the financial industry.
• The reported interest rate of 6.345% on the underlying securities from Goldman Sachs Capital I is a specific coupon rate for that debt instrument.
• The interest rate swap at 3.00% is a contractual rate designed to manage interest rate risk, a standard practice in structured finance.
• The credit ratings provided (Moody's N/A, S&P BB+) are indicative of the risk profile associated with the certificates at the time of the report, reflecting industry-standard rating agency assessments.

Related Party Transactions

• The filing details transactions related to the Interest Rate Swap entered into between PPLUS Trust Series GSC-2 and Merrill Lynch International, including interest payments made to Merrill Lynch International.

Stakeholder Impact

• Shareholders (Certificate Holders): Receive interest distributions as reported in the filing. The amount and regularity depend on the performance of the underlying securities and the swap agreement.
• Merrill Lynch Depositor, Inc.: Acts as the depositor, responsible for the trust's administration and reporting.
• Merrill Lynch International: Acts as a counterparty to the interest rate swap, receiving payments as detailed.
• The Goldman Sachs Group, Inc.: As the issuer of the underlying securities, its financial health and performance directly impact the trust's distributions.

Next Steps

• Holders of PPLUS Trust Certificates Series GSC-2 are directed to review the periodic reports of The Goldman Sachs Group, Inc. for information regarding the underlying securities.
• Future distributions will be made according to the terms of the trust and the performance of the underlying assets and swap agreement.

Key Dates

Keywords

PPLUS Trust Series GSC-2, Distribution Report, Capital Securities, Interest Rate Swap, Goldman Sachs Capital I, Merrill Lynch Depositor, Trustee Report, August 2026