Goldman Sachs plans to price 15-year callable CMS spread notes

By Angela McDaniels

Tacoma, Wash., Jan. 6 - Goldman Sachs Group, Inc. plans to price 15-year callable CMS spread notes, according to a 424B2 filing with the Securities and Exchange Commission.

The interest rate will be 11% for the first year. After that, the rate will be four times the CMS spread, subject to a minimum rate of zero and a maximum rate of 11%. The CMS spread is the 10-year Constant Maturity Swap rate minus the two-year CMS rate minus 15 basis points. Interest is payable quarterly.

If the final CMS spread multiplied by four is greater than zero, the payout at maturity will be par plus 20 times the CMS spread. Otherwise, the payout will be par.

Beginning one year after issuance, the notes will be callable at par on any interest payment date.

The Cusip for the notes is 38143UQT1.

Goldman Sachs & Co. is the underwriter.

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