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Goldman Sachs Bank plans contingent coupon 2018 CDs on 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 Altria Group, Inc., Amgen Inc., Apple Inc., Barrick Gold Corp., Bristol-Meyers Squibb Co., Intel Corp., McDonald's Corp., PepsiCo, Inc., Southern Co., Inc. and Verizon Communications Inc.
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 to 95% of the initial level, its performance will be fixed at 6%. Otherwise, its performance will be the greater of the stock return and negative 25%. 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: 38143ARS6).
Goldman, Sachs & Co. is the agent. Incapital LLC is the distributor.
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