Goldman Sachs plans notes due March 2015 inversely linked to copper

By Angela McDaniels

Tacoma, Wash., Aug. 20 – Goldman Sachs Group, Inc. plans to price 0% notes due March 9, 2015 inversely linked to the performance of copper, according to a 424B2 filing with the Securities and Exchange Commission.

The copper performance will be the quotient of the final copper price divided by the initial copper price, expressed as a percentage.

If the copper performance is less than 95%, the payout at maturity will be the sum of (1) the minimum settlement amount plus (2) the product of (i) $1,000 times (ii) the difference of (a) 95% minus (b) the copper performance.

If the final copper price is greater than or equal to 95% of the initial copper price, the payout will be the minimum settlement amount.

The minimum settlement amount is expected to be between $950 and $975 and will be set at pricing. In addition, due to the copper return formula, the payout at maturity cannot exceed between $1,900 and $1,925 per $1,000 principal amount of notes, depending on where the minimum settlement amount is set.

Goldman Sachs & Co. is the underwriter.

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