Goldman Sachs Bank plans contingent coupon CDs due 2022 on 10 stocks

By Marisa Wong

Madison, Wis., Aug. 3 - Goldman Sachs Bank USA plans to price autocallable variable contingent coupon certificates of deposit due 2022 linked to a basket of 10 stocks, according to a term sheet.

The underlying stocks are 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.

Interest is payable annually in an amount equal to the average of the stock returns, subject to a floor of zero.

If a stock's return is zero or positive, its performance will be fixed at a maximum stock return of 8% to 9%. Otherwise, its performance will be the greater of the stock return and a minimum stock return of negative 10%. The exact maximum stock return will be set at pricing.

If, on any coupon determination date up to but excluding the final coupon determination date, the sum of the coupons determined on each determination date up to and including the current determination date is greater than or equal to $200 per $1,000 face amount, the CDs will be automatically called at par plus the coupon then due.

The payout at maturity will be par.

There is a survivor put for the CDs (Cusip: 38143AYQ2).

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

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