New Issue: Goldman Sachs prices $50 million notes linked to 10-, two-year CMS rates

By Laura Lutz

Des Moines, June 11 - The Goldman Sachs Group, Inc. priced $50 million callable Constant Maturity Swap (CMS) spread notes due June 21, 2017 linked to the 10-year and two-year CMS rates, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will bear interest at a fixed rate of 8% until June 21, 2009. Beginning on that date, interest will be 8% times the proportion of days during the interest period that the spread of the 10-year CMS rate over the two-year CMS rate is greater than or equal to zero. Interest will be payable quarterly.

The notes will be callable at par plus accrued interest on any interest payment date on or after June 21, 2009.

The payout at maturity will be par plus accrued interest.

Goldman, Sachs & Co. is agent.

Issuer:	The Goldman Sachs Group, Inc.
Issue:	Medium-term notes
Underlying rates:	10-year and two-year Constant Maturity Swap (CMS) rates
Amount:	$50 million
Maturity:	June 21, 2017
Interest:	8%, payable quarterly for first two years; from June 21, 2009, interest will be 8% times the proportion of days during the interest period that the spread of the 10-year CMS rate over the two-year CMS rate is greater than or equal to zero
Price:	Par
Payout at maturity:	Par
Call:	On interest payment dates starting June 21, 2009, at par plus accrued interest
Pricing date:	June 7
Settlement date:	June 21
Agent:	Goldman, Sachs & Co.
Underwriting discount:	0.175%

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