Goldman Sachs plans variable coupon CDs due 2022 linked to 10 stocks

By Angela McDaniels

Tacoma, Wash., Aug. 12 – Goldman Sachs Bank USA plans to price variable coupon certificates of deposit due Aug. 26, 2022 linked to a basket of stocks, according to a term sheet.

The equally weighted basket includes the stocks of AT&T Inc., Bristol-Myers Squibb Co., Coca-Cola Co., Eli Lilly & Co., Intel Corp., Philip Morris International Inc., Qualcomm Inc., Schlumberger NV (Schlumberger Ltd.), Starbucks Corp. and Walgreens Boots Alliance, Inc.

The CDs will pay a coupon each year equal to the average of the basket stocks’ performances, subject to a minimum coupon rate of 1.25%.

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 agent. Incapital LLC is distributor.

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

The Cusip number is 38148DCM4.

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