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

By Jennifer Chiou

New York, Sept. 5 - Goldman Sachs Bank USA plans to price variable-coupon basket-linked certificates of deposit due 2020 linked to 10 stocks, according to a term sheet.

The underlying stocks are Apple Inc., Cisco Systems, Inc., Freeport-McMoRan Copper & Gold Inc., Kimberly-Clark Corp., McDonald's Corp., Merck & Co., Inc., Proctor & Gamble Co., Target Corp., Walgreen Co. 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 1%.

If a stock's return is flat or positive, its performance will be fixed at 6% to 6.5%. 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 20%.

The payout at maturity will be par.

There is a survivor put for the CDs (Cusip: 38147JLJ9), which are expected to price on Sept. 25 and settle on Sept. 30.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.