Goldman Sachs plans six-year contingent-coupon CDs tied to 10 stocks

By Toni Weeks

San Diego, Feb. 29 - Goldman Sachs Bank USA plans to price contingent-coupon basket-linked certificates of deposit due 2018 linked to a basket of common stocks, according to a term sheet.

The basket includes Aflac Inc., Altria Group, Inc., AT&T Inc., Eli Lilly & Co., Exelon Corp., Exxon Mobile Corp., Freeport-McMoRan Copper & Gold Inc., Lockheed Martin Corp., Microsoft Corp. and TJX Cos., equally weighted.

The CDs will pay a coupon each year equal to the average of the basket stocks' performances, subject to a minimum interest rate of zero.

If a basket stock's return is greater than or equal to zero, its performance will be equal to the fixed percentage. If a basket stock's return is negative, its performance will be the greater of its return and negative 25%. The fixed percentage is expected to be 6% to 8% and will be set at pricing.

The payout at maturity will be par plus the final coupon, if any.

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

The Cusip number is 38143ALD5.

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