Goldman Sachs plans CDs linked to Motif Capital National Defense index

By Angela McDaniels

Tacoma, Wash., April 17 – Goldman Sachs Bank USA plans to price 0% certificates of deposit due April 30, 2024 linked to the Motif Capital National Defense 7 ER index, according to a term sheet.

If the index return is positive, the payout at maturity will be par plus 125% to 140% of the index return. The exact upside participation rate will be set at pricing. If the index return is zero or negative, the payout will be par.

The index tracks the U.S. exchange-listed common equity of public companies that derive at least 10% of their revenue from defense-related sales, principally of weapons systems to U.S. and foreign governments. The index measures the extent to which the stocks and any money market position outperform Libor plus 75 basis points per year, accruing daily.

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

The CDs are expected to price April 25.

The Cusip number is 38148DTQ7.

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