Goldman Sachs to price variable-coupon CDs due 2025 on 10 stocks

By Marisa Wong

Morgantown, W.Va., Sept. 20 – Goldman Sachs Bank USA plans to price variable-coupon basket-linked certificates of deposit due Sept. 25, 2025 linked to an equally weighted basket of 10 stocks, according to a term sheet.

The underlying stocks are AT&T Inc., Chevron Corp., Cisco Systems, Inc., Exxon Mobil Corp., Merck & Co., Inc., PepsiCo, Inc., Pfizer Inc., Coca-Cola Co., Procter & Gamble Co. and Verizon Communications, Inc.

Interest is payable annually in an amount equal to the average of the stock performances, subject to a floor of 1.5%.

If a stock’s return is flat or positive, its performance will be fixed at a maximum stock return expected to be 6.75% to 7.25%. The exact fixed percentage will be set at pricing. Otherwise, its performance will be the greater of the stock return and negative 15%.

The payout at maturity will be par.

Goldman Sachs & Co. is the underwriter. Incapital LLC is distributor.

The CDs will price Sept. 24.

The Cusip number is 38148RKR3.

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