Goldman Sachs plans variable-coupon autocallable CDs on stock basket

By Toni Weeks

San Luis Obispo, Calif., April 3 - Goldman Sachs Bank USA plans to price autocallable variable-coupon basket-linked certificates of deposit due April 28, 2023 linked to a basket of common stocks, according to a term sheet.

The equally weighted basket includes Apple Inc., Barrick Gold Corp., Carnival Corp., Google Inc., McDonald's Corp., Mondelez International, Inc., Target Corp., Verizon Communications Inc., Walgreen Co. and Wal-Mart Stores, Inc.

The CDs will pay a coupon each year equal to the average of the basket stocks' performances, subject to a minimum coupon rate of 1%.

If a basket stock's return is zero or positive, its performance will be equal to the maximum stock return of 6%. If a basket stock's return is negative, its performance will be the greater of its return and negative 20%.

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

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

The CDs are expected to price April 25 and settle April 30.

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

The Cusip number is 38147JDB5.

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