Business Context and Reporting Period
This 8-K filing serves as a Distribution Report for PPLUS Trust Series GSC-2, a structured finance vehicle issued by Merrill Lynch Depositor Inc. The report covers the distribution date of May 15, 2025. The Trust holds 6.345% Capital Securities due 2034 issued by Goldman Sachs Capital I as underlying assets and utilizes an interest rate swap agreement with Merrill Lynch International to manage interest rate exposure.
Key Financial Metrics
| Metric | Value |
|---|---|
| Total Distribution to Holders | $454,392.11 (Interest only) |
| Principal Distribution | $0.00 |
| Underlying Securities Principal | $35,000,000 |
| Underlying Interest Rate | 6.345% |
| Swap Notional Amount | $35,000,000 |
| Swap Interest Rate | 3.00% |
| Trustee Compensation | $0.00 |
| Unpaid Accrued Interest | $0.00 |
Material Changes and Financial Position
The filing indicates that the Trust received no principal or premium payments from the underlying Goldman Sachs Capital I securities for this period. The entire distribution amount of $454,392.11 was derived from the net settlement of the Interest Rate Swap Agreement. The aggregate principal balance of the certificates remains unchanged at $35,000,000, with no reductions reported as of the distribution date.
Outlook, Risks, and Ratings
The filing provides current credit ratings for the certificates: BB+ from Standard & Poor's Rating Service. The rating from Moody's Investor Service is listed as N/A. The distribution reflects a net amount after offsetting receivables and payables under the swap agreement. No specific forward-looking guidance or management commentary regarding future market conditions is included in this distribution report.
Investor Verification Checklist
- Verify the BB+ credit rating status with Standard & Poor's to confirm no recent downgrades.
- Confirm the 3.00% swap rate remains fixed or variable as per the original swap agreement terms.
- Check for any upcoming principal amortization schedules, as the current report shows $0.00 principal distribution.
- Review the underlying Goldman Sachs Capital I securities for any credit events or payment defaults not reflected in this specific period's cash flow.