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Goldman Sachs to price variable coupon CDs linked to stock basket
By Angela McDaniels
Tacoma, Wash., July 13 – Goldman Sachs Bank USA plans to price variable coupon certificates of deposit due July 28, 2022 linked to a basket of stocks, according to a term sheet.
The equally weighted basket includes the stocks of Amazon.com, Inc., AT&T Inc., Bristol-Myers Squibb Co., Coca-Cola Co., Facebook, Inc., Gilead Sciences, Inc., Intel Corp., Philip Morris International Inc., Qualcomm Inc. and Schlumberger NV (Schlumberger Ltd.).
The CDs will pay a coupon each year equal to the average of the basket stocks’ performances, subject to a minimum coupon rate of 1.25%.
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 10%. 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 plus the final coupon.
Goldman Sachs & Co. is the agent. Incapital LLC is distributor.
The CDs are expected to price July 27 and settle July 30.
The Cusip number is 38148DBQ6.
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