Goldman Sachs Bank plans contingent coupon CDs linked to 10 stocks

By Marisa Wong

Madison, Wis., Oct. 2 - Goldman Sachs Bank USA plans to price contingent coupon certificates of deposit due 2019 linked to a basket of 10 stocks, according to a term sheet.

The underlying stocks are Apple Inc., Barrick Gold Corp., Bristol-Myers Squibb Co., Duke Energy Corp., Google Inc., McDonald's Corp., PepsiCo, Inc., Southern Co., Target Corp. and Wal-Mart Stores, Inc.

Interest is payable annually in an amount equal to the average of the stock returns, subject to a floor of zero.

If a stock's return is zero or positive, its performance will be fixed at 6% to 6.5%. The exact fixed percentage will be set at pricing. Otherwise, its performance will be the greater of the stock return and a minimum stock return of negative 20%.

The payout at maturity will be par.

The CDs (Cusip: 38143AK38) are expected to price on Oct. 26 and settle on Oct. 31.

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

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