8-K: PPLUS Trust GSC-2 Announces November 17 Distribution

Merrill Lynch Depositor, Inc. announced a distribution of $486,462.14 to holders of PPLUS Trust Certificates Series GSC-2 on November 17, 2025.

Summary

• PPLUS Trust Series GSC-2 made a distribution to certificate holders on November 17, 2025.
• The distribution included $486,462.14 in interest.
• No principal or premium was distributed from the underlying securities.
• The interest amount was primarily derived from an Interest Rate Swap Agreement with Merrill Lynch International.
• The aggregate stated principal amount of the Underlying Securities is $35,000,000, with an interest rate of 6.345% due 2034.
• The notional amount of the Swap Agreement is $35,000,000, with an interest rate of 3.00%.
• The Certificates are rated BB+ by Standard & Poor's Rating Service.

Sentiment

Score: 7

Explanation: The filing reports a routine, expected distribution to certificate holders, indicating the trust is functioning as designed. There are no negative surprises, but also no significant positive developments beyond the scheduled payment. The risks highlighted are standard disclaimers for such structured products.

Positives

• A distribution of $486,462.14 in interest was made to PPLUS Trust Series GSC-2 certificate holders.
• The Trust received $486,462.14 in interest from the Interest Rate Swap Agreement.
• The principal balance of the Certificates remains stable at $35,000,000.

Negatives

• No principal or premium was received from the underlying 6.345% Capital Securities due 2034 issued by Goldman Sachs Capital I.

Risks

• The depositor and trustee did not participate in the preparation of the underlying securities guarantor's Exchange Act reports and made no due diligence inquiry into the information provided therein.
• No independent investigation was made regarding the underlying securities issuer and guarantor (Goldman Sachs Group, Inc.), including their financial condition or creditworthiness.
• There is no assurance that events affecting the underlying securities or their issuer/guarantor have not occurred or been publicly disclosed, which could impact the accuracy or completeness of publicly available documents.
• Investors are advised to obtain and evaluate information concerning the underlying securities issuer and guarantor as if their investment were direct.

Future Outlook

The filing does not provide forward-looking statements or guidance beyond the routine distribution. It primarily reports a past event.

Management Comments

• Merrill Lynch Depositor, Inc. has duly caused this report to be signed on its behalf by Matthew Nelson, President.

Industry Context

This filing is a routine distribution report for an asset-backed trust. It reflects the ongoing administration of structured financial products, where a depositor (Merrill Lynch) creates a trust (PPLUS Trust Series GSC-2) that holds underlying securities (Goldman Sachs Capital I debentures) and often uses derivatives (interest rate swaps) to manage cash flows and provide a specific return profile to certificate holders. The underlying securities are from Goldman Sachs, a major financial institution, indicating the trust's exposure to a large, established entity.

Comparison to Industry Standards

• The structure of PPLUS Trust Series GSC-2, involving underlying capital securities and an interest rate swap, is a common securitization practice in the financial industry, similar to other asset-backed securities (ABS) or collateralized debt obligations (CDOs) that repackage and distribute cash flows from various assets.
• The BB+ rating from Standard & Poor's indicates a speculative grade, below investment grade, which is typical for certain structured products that might carry higher risk or are subordinated to other tranches. This rating is comparable to other non-investment grade corporate bonds or structured finance products with similar risk profiles.
• The 6.345% interest rate on the underlying Goldman Sachs Capital I securities is consistent with rates seen on junior subordinated debentures or hybrid capital instruments issued by financial institutions, reflecting their position in the capital structure.

Related Party Transactions

• The Interest Rate Swap Agreement is between PPLUS Trust Series GSC-2 and Merrill Lynch International, which is an affiliate of Merrill Lynch Depositor, Inc., the registrant. This constitutes a related party transaction.

Stakeholder Impact

• Shareholders (Certificate Holders): Received a scheduled interest distribution, indicating the trust is performing its payment obligations.
• Merrill Lynch Depositor, Inc.: Continues its role in administering the trust and fulfilling reporting requirements.
• Merrill Lynch International: Participated in the Interest Rate Swap Agreement, receiving a net zero distribution in this period, indicating the swap is functioning as intended.
• Goldman Sachs Group, Inc.: The underlying securities issuer, whose financial health indirectly impacts the trust, but no direct impact from this specific distribution report.

Next Steps

• Holders of PPLUS Trust Certificates Series GSC-2 will continue to receive distributions as per the trust's terms.
• Merrill Lynch Depositor, Inc. will continue to file periodic reports as required by the SEC.

Key Dates

Keywords

PPLUS Trust, GSC-2, Merrill Lynch Depositor, Goldman Sachs Capital I, Distribution, Trust Certificates, Interest Rate Swap, SEC Filing, 8-K, Capital Securities, Fixed Income