Goldman Sachs Bank plans variable-coupon CDs due 2021 on 10 stocks

By Marisa Wong

Madison, Wis., Feb. 7 - Goldman Sachs Bank USA plans to price variable-coupon basket-linked certificates of deposit due Feb. 26, 2021 linked to a basket of 10 stocks, according to a term sheet.

The underlying stocks are Apple Inc., AbbVie Inc., Caterpillar Inc., Cisco Systems, Inc., McDonald's Corp., Merck & Co., Inc., Microsoft Corp., Occidental Petroleum Corp., Walgreen Co. 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 1%.

If a stock's return is flat or positive, its performance will be fixed at a maximum stock return of 6%. 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 15%.

The payout at maturity will be par.

There is a survivor put for the CDs (Cusip: 38147JTG7), which are expected to price on Feb. 25 and settle on Feb. 28.

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

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