Goldman plans 15-year, non-call one year, callable CMS spread notes

By Marisa Wong

Madison, Wis., May 25 - Goldman Sachs Group, Inc. plans to price 15-year callable CMS spread notes, according to a 424B2 filing with the Securities and Exchange Commission.

The interest rate will be 10.5% for the first year. After that, the rate will be four times the spread of the 10-year Constant Maturity Swap rate minus the two-year CMS rate, subject to a minimum rate of zero and a maximum rate of 10%. Interest is payable quarterly.

After the first year, if the two-year CMS rate is greater than or equal to the 10-year CMS rate on an interest determination date, investors will not receive any interest for that period - even if the CMS spread on subsequent days is greater than 0%.

Beginning one year after issuance, the notes will be callable at par on any interest payment date.

The Cusip for the notes is 38143UVD0.

Goldman Sachs & Co. is the underwriter.

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