New Issue: Goldman Sachs prices $395,000 notes tied to Turkish lira versus dollar

By Toni Weeks

San Diego, June 12 - Goldman Sachs Group, Inc. prices $395,000 of 0% currency-linked notes due June 21, 2013 linked to the Turkish lira, according to a 424B2 filing with the Securities and Exchange Commission.

The issuer said that by purchasing the notes, investors take the view that the lira will appreciate in value against the dollar over the life of the notes.

If the currency return is greater than or equal to negative 20%, the payout at maturity will be par plus the greater of the currency return and 10.5%. If the currency return is less than negative 20%, investors will be fully exposed to the decline from the initial exchange rate.

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

Issuer:	Goldman Sachs Group, Inc.
Issue:	Currency-linked notes
Underlying currency:	Turkish lira, relative to dollar
Amount:	$395,000
Maturity:	June 21, 2013
Coupon:	0%
Price:	Par
Payout at maturity:	If currency return is greater than or equal to negative 20%, par plus greater of currency return and 10.5%; if return is less than negative 20%, full exposure to losses
Initial rate:	1.82785
Pricing date:	June 8
Settlement date:	June 15
Underwriter:	Goldman Sachs & Co. with J.P. Morgan Securities LLC as agent
Fees:	1.1%
Cusip:	38143UX63

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