Goldman Sachs to price variable-coupon CDs linked to 10 stocks

By Toni Weeks

San Diego, Jan. 7 - Goldman Sachs Bank USA plans to price variable-coupon basket-linked certificates of deposit due Jan. 31, 2020 linked to a basket of common stocks, according to a term sheet.

The equally weighted stocks include Apple Inc., Altria Group, 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.

The CDs will pay a coupon each year based on the basket return, subject to a minimum coupon of 0.5%. The basket return is based on the arithmetic average of the stock returns of each stock in the basket from the pricing date to and including each coupon determination date, which are in January of each year.

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 20%. 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 Jan. 28 and settle Jan. 31.

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

The Cusip number is 38143A3Y9.

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