Goldman plans 15-year callable quarterly notes tied to CMS rates

By Jennifer Chiou

New York, April 4 - Goldman Sachs Group, Inc. plans to price 15-year callable quarterly CMS spread notes linked to the 30-year Constant Maturity Swap Rate and the two-year CMS rate, according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be 9% during the first year.

After the first year, if the spread of the 30-year CMS rate over the two-year CMS rate time four is greater than or equal to 10%, the interest rate will be 10% per year. If it is less than 10% but greater than 0%, interest will be equal to the CMS spread times four. Interest is payable quarterly.

The notes will not accrue interest if the CMS spread times four is at or less than 0%.

The payout at maturity will be par.

The notes are callable in whole at par plus accrued interest on any interest payment date beginning in July 2012.

Goldman Sachs & Co. is the underwriter for the notes (Cusip: 38143U2D2).

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