New Issue: Goldman Sachs prices $18.25 million of notes linked to gold

By Angela McDaniels

Tacoma, Wash., Oct. 12 - Goldman Sachs Group, Inc. priced $18.25 million of 0% commodity-linked notes due Oct. 22, 2012 linked to the price of gold, according to a 424B2 filing with the Securities and Exchange Commission.

If the final price of gold is greater than the initial price of gold, the payout at maturity will be par plus the gold return, subject to a maximum settlement amount of $1,352.50 per $1,000 principal amount of notes. If the price of gold declines by up to 20%, the payout will be par. Investors will be fully exposed to the decline from the initial price if the price of gold declines by more than 20%.

Goldman Sachs & Co. is the underwriter with J.P. Morgan Securities LLC as dealer.

Issuer:	Goldman Sachs Group, Inc.
Issue:	Commodity-linked notes
Underlying commodity:	Gold
Amount:	$18,252,000
Maturity:	Oct. 22, 2012
Coupon:	0%
Price:	Variable prices
Payout at maturity:	Par plus any increase in price of gold, up to maximum return of 35.25%; par if price of gold decline by up to 20%; full exposure to decline if price of gold declines by more than 20%
Initial gold price:	$1,661
Pricing date:	Oct. 10
Settlement date:	Oct. 17
Underwriter:	Goldman Sachs & Co. with J.P. Morgan Securities LLC as dealer
Fees:	1.1%
Cusip:	38143UYC9

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