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Goldman Sachs Bank plans contingent coupon CDs tied to stocks
By Jennifer Chiou
New York, May 1 - Goldman Sachs Bank USA plans to price contingent coupon certificates of deposit due 2018 linked to a basket of stocks, according to a term sheet.
The underlying stocks are Staples, Inc., Walgreen Co., Marathon Petroleum Corp., Aflac Inc., Medtronic, Inc., Northrop Grumman Corp., Hewlett-Packard Co., Freeport-McMoRan Copper & Gold Inc., Verizon Communications Inc. and Entergy Corp.
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 above or equal the initial level, its performance will be fixed at 6% to 8%. Otherwise, its performance will be the greater of the stock return and negative 30%. The exact fixed percentage will be set at pricing.
The payout at maturity will be par.
There is a survivor put for the CDs (Cusip: 38143AQZ1).
Goldman, Sachs & Co. is the agent. Incapital LLC is the distributor.
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