Goldman Sachs to price buffered CDs linked to basket of 10 stocks

By Angela McDaniels

Tacoma, Wash., Sept. 4 - Goldman Sachs Bank USA plans to price buffered basket-linked certificates of deposit due 2017 linked to a basket of 10 common stocks, according to a term sheet.

The equally weighted basket includes Apple Inc., Barrick Gold Corp., Bristol-Myers Squibb Co., Duke Energy Corp., Google Inc., McDonald's Corp., PepsiCo, Inc., Southern Co., Target Corp. 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 zero or positive, its performance will be equal to 5%. If a basket stock's return is negative, its performance will be the greater of its return and the minimum underlying return, which is expected to be negative 25% to negative 30% and will be set at pricing.

The payout at maturity will be par.

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

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

The Cusip number is 38143AC37.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.