Goldman Sachs Bank plans contingent coupon CDs due 2020 on stocks

By Jennifer Chiou

New York, Jan. 7 - Goldman Sachs Bank USA plans to price contingent coupon certificates of deposit due 2020 linked to a basket of 10 stocks, according to a term sheet.

The underlying stocks are Altria Group, Inc., Apple Inc., Barrick Gold Corp., Bristol-Myers Squibb Co., Cisco Systems, Inc., Eli Lilly and Co., McDonald's Corp., PepsiCo, Inc., Verizon Communications Inc. 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 zero.

If a stock's return is at or greater than negative 5%, its performance will be fixed at 5% to 5.5%. The exact fixed percentage will be set at pricing. Otherwise, its performance will be the greater of the stock return and a minimum stock return of negative 10%.

The payout at maturity will be par.

The CDs (Cusip: 38143A4C6) are expected to price on Jan. 28 and settle on Jan. 31.

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

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