Goldman Sachs to price autocallable variable contingent coupon CDs linked to basket of stocks

By Angela McDaniels

Tacoma, Wash., Oct. 2 - Goldman Sachs Bank USA plans to price autocallable variable contingent coupon certificates of deposit due 2022 linked to a basket of common stocks, according to a term sheet.

The equally weighted basket includes 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.

The CDs will pay a coupon each year equal to the average of the basket stocks' performances, subject to a minimum interest rate of zero.

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 8% to 9% and will be set at pricing.

The payout at maturity will be par.

The CDs will be automatically called at par plus accrued interest if on a coupon determination date the sum of the coupons up to and including that coupon determination date total $200 or more per $1,000 face amount of CDs.

The CDs are expected to price Oct. 26 and settle Oct. 31.

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

The Cusip number is 38143AJ63.

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