New Issue: Goldman Sachs prices $804,000 15-year callable CMS spread notes

By Angela McDaniels

Tacoma, Wash., July 30 - Goldman Sachs Group, Inc. priced $804,000 of callable CMS spread notes due July 31, 2023, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable quarterly and will accrue at 8.25% per year for the first year. After that, the interest rate will equal 8.25% per year multiplied by the proportion of days on which the 10-year Constant Maturity Swap rate is greater than or equal to the two-year CMS rate.

Beginning July 31, 2009, the notes will be callable at par on any interest payment date.

If the notes are not called, the payout at maturity will be par.

Goldman, Sachs & Co. is the underwriter.

Issuer:	Goldman Sachs Group, Inc.
Issue:	Callable CMS spread notes
Amount:	$804,000
Maturity:	July 31, 2023
Coupon:	8.25% for first year; beginning July 31, 2009, 8.25% per year multiplied by proportion of days on which 10-year CMS rate is greater than or equal to two-year CMS rate; payable quarterly
Price:	Par
Payout at maturity:	Par
Call option:	At par on interest payment dates from July 31, 2009 onward
Pricing date:	July 28
Settlement date:	July 31
Underwriter:	Goldman, Sachs & Co.
Fees:	3%

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