Goldman Sachs plans variable coupon CDs due 2023 linked to 10 stocks

By Angela McDaniels

Tacoma, Wash., Jan. 14 – Goldman Sachs Bank USA plans to price variable coupon certificates of deposit due Jan. 26, 2023 linked to a basket of stocks, according to a term sheet.

The equally weighted basket includes the stocks of AbbVie Inc., Bristol-Myers Squibb Co., Eli Lilly & Co., Intel Corp., Mondelez International, Inc., Qualcomm Inc., Schlumberger NV (Schlumberger Ltd.), Starbucks Corp., Walt Disney Co. and g Wal-Mart Stores, Inc.

The CDs will pay a coupon each year equal to the average of the basket stocks’ performances, subject to a minimum coupon rate of 1.25%.

If a basket stock’s return is zero or positive, its performance will be equal to the maximum stock return. If a basket stock’s return is negative, its performance will be the greater of its return and negative 15%. The maximum stock return is expected to be 5% to 5.5% and will be set at pricing.

The payout at maturity will be par plus the final coupon.

Goldman Sachs & Co. is the agent. Incapital LLC is distributor.

The CDs are expected to price Jan. 25.

The Cusip number is 38148DFT6.

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