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Goldman Sachs to price variable-coupon CDs linked to 10 stocks
By Angela McDaniels
Tacoma, Wash., Sept. 4 - Goldman Sachs Bank USA plans to price variable-coupon basket-linked certificates of deposit due 2019 linked to a basket of 10 common stocks, according to a term sheet.
The equally weighted basket includes Apple Inc., Barrick Gold Corp., Bristol-Myers Squibb Co., Duke Energy Corp., Google Inc., McDonald's Corp., PepsiCo, Inc., Southern Co., Target Corp. and Wal-Mart Stores, Inc.
The CDs will pay a coupon each year equal to the average of the basket stocks' performances, subject to a minimum coupon rate of 0.5%.
If a basket stock's return is zero or positive, its performance will be equal to the maximum stock return. If a basket stock's return is negative, its performance will be the greater of its return and negative 25%. The maximum stock return is expected to be 5% to 5.5% and will be set at pricing.
The payout at maturity will be par.
The CDs are expected to price Sept. 25 and settle Sept. 28.
Goldman Sachs & Co. is the agent. Incapital LLC is distributor.
The Cusip number is 38143AB87.
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