Goldman Sachs Bank plans variable-coupon CDs linked to 10 stocks

By Marisa Wong

Madison, Wis., Aug. 3 - Goldman Sachs Bank USA plans to price autocallable variable-coupon basket-linked certificates of deposit due 2022 linked to a basket of 10 stocks, according to a term sheet.

The underlying stocks are 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.

Interest is payable annually in an amount equal to the average of the stock returns, subject to a floor of 0.25%.

If a stock's return is greater than or equal to negative 5%, its performance will be fixed at 7% to 8%. Otherwise, its performance will be the greater of the stock return and negative 15%. The exact fixed percentage will be set at pricing.

If, on any coupon determination date up to but excluding the final coupon determination date, the sum of the coupons determined on each determination date up to and including the current determination date is greater than or equal to $200 per $1,000 face amount, the CDs will be automatically called at par plus the coupon then due.

The payout at maturity will be par.

There is a survivor put for the CDs (Cusip: 38143AYR0).

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

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