Goldman Sachs plans variable coupon CDs linked to GS Momentum Builder

By Angela McDaniels

Tacoma, Wash., April 4 - Goldman Sachs Bank USA plans to price variable coupon certificates of deposit due April 29, 2021 linked to the GS Momentum Builder Multi-Asset 2 ER index, according to a term sheet.

The index measures the extent to which the performance of the exchange-traded funds included in the index outperform Libor. The index rebalances monthly, and sometimes daily, from among 18 ETFs that track U.S., international, developed and emerging equity markets, commodity markets, real estate markets and fixed-income assets.

Interest is payable annually. The interest rate will be between 2% and 3% for the first year. After that, the interest rate will be the index return divided by the number of coupon payment dates that have occurred up to and including the current coupon payment date, subject to a minimum of 0.5%.

The payout at maturity will be par.

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

The CDs are expected to price April 24 and settle April 29.

The Cusip number is 38147JWW8.

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