Goldman Sachs plans variable-coupon CDs due 2020 linked to 10 stocks

By Marisa Wong

Madison, Wis., June 8 – Goldman Sachs Bank USA plans to price variable coupon certificates of deposit due June 29, 2020 linked to a basket of stocks, according to a term sheet.

The equally weighted basket includes the common stocks of Amazon.com, Inc., AT&T Inc., Bristol-Myers Squibb Co., Coca-Cola Co., Facebook, Inc., Gilead Sciences, Inc., Intel Corp., Philip Morris International Inc., Qualcomm Inc. and Schlumberger NV.

The CDs will pay a coupon each year equal to the average of the basket stocks’ performances, subject to a minimum coupon rate of 0.5%.

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 10%. 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 underwriter. Incapital LLC is the distributor.

The notes will price on June 24 and settle on June 29.

The Cusip number is 38148DAZ7.

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