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

By Angela McDaniels

Tacoma, Wash., Feb. 1 - Goldman Sachs Bank USA plans to price variable-coupon basket-linked certificates of deposit due 2019 linked to a basket of common stocks, according to a term sheet.

The basket includes Altria Group, Inc., Apple Inc., AT&T Inc., Barrick Gold Corp., Intel Corp., Eli Lilly & Co., Freeport-McMoRan Copper & Gold Inc., Southern Co., Verizon Communications Inc. and Wal-Mart Stores, Inc., equally weighted.

The CDs will pay a coupon each year equal to the average of the basket stocks' performances, subject to a minimum coupon rate of 0.25% to 0.5%. The exact minimum coupon rate will be set at pricing.

If a basket stock's return is greater than or equal to negative 5%, its performance will be 6%. If a basket stock's return is less than negative 5%, its performance will be the greater of its return and negative 15%.

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

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

The Cusip number is 38143AJJ5.

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