Goldman Sachs plans variable coupon CDs due 2023 linked to 10 stocks

By Sarah Lizee

Olympia, Wash., Nov. 21 – Goldman Sachs Bank USA plans to price variable coupon certificates of deposit due Nov. 29, 2023 linked to a basket of stocks, according to a term sheet.

The equally weighted basket includes the stocks of AT&T Inc., Chevron Corp., Exxon Mobil Corp., Intel Corp., PepsiCo, Inc., Pfizer Inc., Coca-Cola Co., Procter & Gamble Co., Verizon Communications Inc. and Wells Fargo & Co.

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 15%. The maximum stock return is expected to be 7.5% to 8% 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 Nov. 26.

The Cusip number is 38148RPA5.

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