Goldman Sachs to price contingent-coupon CDs linked to 20 stocks

By Angela McDaniels

Tacoma, Wash., Feb. 1 - Goldman Sachs Bank USA plans to price contingent-coupon basket-linked certificates of deposit due 2018 linked to a basket of common stocks, according to a term sheet.

The basket includes Applied Materials, Inc., Archer-Daniels-Midland Co., Avon Products, Inc., Best Buy Co., Inc., Cliffs Natural Resources Inc., Corning Inc., Devon Energy Corp., Gap Inc., Ford Motor Co., Forest Laboratories, Inc., Freeport-McMoRan Copper & Gold Inc., Hospira, Inc., JPMorgan Chase & Co., Leucadia National Corp., L-3 Communications Holdings, Inc., Lincoln National Corp., Mosaic Co., Newfield Exploration Co., Peabody Energy Corp. and Western Digital Corp., equally weighted.

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 fixed percentage. If a basket stock's return is negative, its performance will be the greater of its return and negative 20%. The fixed percentage is expected to be 6% to 7% and will be set at pricing.

The payout at maturity will be par plus the final coupon, if any.

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

The Cusip number is 38143AHU2.

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