Goldman Sachs plans to price 15-year callable CMS spread notes

By Jennifer Chiou

New York, June 4 - Goldman Sachs Group, Inc. plans to price 15-year callable CMS spread notes, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable quarterly and will accrue at 11% to 13% per year for the first year. After that, the interest rate will equal six times the spread of the 10-year Constant Maturity Swap over the two-year CMS rate, subject to a floor of zero and a cap of 18% per year.

Beginning one year after issuance, 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.

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