Goldman Sachs to price five-year exchangeable notes linked to Apple

By Angela McDaniels

Tacoma, Wash., Dec. 8 - Goldman Sachs Group, Inc. plans to price five-year 0% exchangeable equity-linked notes linked to the common stock of Apple Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The notes are exchangeable at any time for a number of Apple shares equal to the exchange rate. The issuer has the option to settle exchanges in cash instead of shares.

The exchange rate is $1,000 divided by the product of (a) the initial share price times (b) one plus a conversion premium, which is expected to be 37% to 44% and will be set at pricing.

The payout at maturity will be a cash amount equal to the average of the averaging date prices on the final three trading days of the life of the notes. The averaging date price is the greater of (a) $1,000 and (b) the product of the closing price of Apple stock on that day multiplied by the exchange rate.

Goldman Sachs & Co. is the underwriter.

The Cusip number is 38143UJ85.

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