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

By Toni Weeks

San Luis Obispo, Calif., March 4 - Goldman Sachs Bank USA plans to price autocallable variable-coupon basket-linked certificates of deposit due March 28, 2023 linked to a basket of common stocks, according to a term sheet.

The equally weighted basket includes Aetna Inc., Cisco Systems, Inc., Discover Financial Services, Freeport-McMoRan Copper & Gold Inc., Halliburton Co., Intel Corp., Lorillard, Inc., Macy's Inc., Northrop Grumman Corp. and Walt Disney Co.

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%.

If a basket stock's return is zero or positive, its performance will be equal to the maximum stock return. If a basket stock's return is negative, its performance will be the greater of its return and negative 10%. The maximum stock return is expected to be 6% to 8% and will be set at pricing.

If on any call observation date the sum of the coupons is greater than or equal to $200 per $1,000 face amount, the CDs will be automatically called.

If the CDs are not called, the payout at maturity will be par plus the final coupon.

The CDs are expected to price March 25 and settle March 28.

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

The Cusip number is 38147JBF8.

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