Goldman Sachs to offer CDs linked to GS Momentum Builder index as well as baskets of stocks

By Sheri Kasprzak

New York, Nov. 1 - Upcoming structured products offerings will include several certificates of deposit from Goldman Sachs Bank USA.

Goldman Sachs plans to price contingent coupon index-linked CDs linked to the GS Momentum Builder Multi-Asset 2 ER index.

The index measures the extent to which the performance of the up to 18 exchange-traded funds included in the index outperform Libor. The index is rebalanced monthly and sometimes daily. The ETFs must outperform Libor in order for the index level to increase.

For the first year, the coupon will be 2.5%. After that, the interest rate on any annual determination date will equal the index return divided by the number of coupon payment dates that have occurred up to and including the relevant coupon determination date. Interest is payable annually and cannot be less than zero.

The CDs are due Nov. 27, 2020 and will pay par.

The CDs are expected to price on Nov. 22 and settle on Nov. 27.

CDs linked to stocks, too

Also ahead, the bank plans to price contingent coupon CDs due Nov. 27, 2020 linked to a basket of 10 stocks.

The underlying stocks are Apple Inc., AbbVie Inc., Amazon.com, Inc., Cisco Systems, Inc., McDonald's Corp., Merck & Co., Inc., Microsoft Corp., PepsiCo, Inc., Proctor & Gamble Co. 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 flat or positive, its performance will be fixed at 8% to 8.5%. The exact fixed percentage will be set at pricing. Otherwise, its performance will be the greater of the stock return and a minimum stock return of negative 15%.

The payout at maturity will be par.

The CDs are expected to price on Nov. 25 and settle on Nov. 29.

Third issue also planned

The bank is also set to price variable-coupon CDs linked to the same basket of 10 stocks.

Interest is payable annually in an amount equal to the average of the stock returns, subject to a floor of 1%.

If a stock's return is flat or positive, its performance will be fixed at 5.5% to 6%. The exact fixed percentage will be set at pricing. Otherwise, its performance will be the greater of the stock return and a minimum stock return of negative 15%.

The payout at maturity, which is Nov. 27, 2020, will be par.

The CDs are expected to price on Nov. 25 and settle on Nov. 29.

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