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Published on 2/4/2013 in the Prospect News Structured Products Daily.

Goldman Sachs plans contingent coupon CDs linked to basket of stocks

By Angela McDaniels

Tacoma, Wash., Feb. 4 - Goldman Sachs Bank USA plans to price contingent coupon certificates of deposit due Feb. 27, 2020 linked to a basket of common stocks, according to a term sheet.

The equally weighted basket includes Apple Inc., Barrick Gold Corp., Carnival Corp., Google Inc., McDonald's Corp., Mondelez International, Inc., Target Corp., Verizon Communications Inc., Walgreen Co. and 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 interest rate of zero.

If a basket stock's return is greater than or equal to negative 5%, its performance will be equal to the maximum stock return. If a basket stock's return is less than negative 5%, its performance will be the greater of its return and negative 10%. The maximum stock return is expected to be 5.5% to 6% and will be set at pricing.

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

The CDs are expected to price Feb. 25 and settle Feb. 28.

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

The Cusip number is 38143A5V3.


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