Goldman Sachs plans seven-year CDs linked to Morningstar Wide Moat

By Angela McDaniels

Tacoma, Wash., July 3 - Goldman Sachs Bank USA plans to price 0% leveraged index-linked certificates of deposit due July 30, 2020 linked to the Morningstar Wide Moat Focus Target Volatility 5 index, according to a term sheet.

If the index return is positive, the payout at maturity will be par plus 1.4 times to 1.6 times the index return. If the index return is zero or negative, the payout will be par. The exact upside participation rate will be set at pricing.

The index allocates exposure between the Morningstar Wide Moat Focus Total Return index (the base index) and a hypothetical cash position based on the degree of variation of the base index over the prior 20 or 60 trading days, whichever is greater, less Libor. The index maintains a volatility target of 5%.

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

The CDs will price July 25 and settle July 30.

The Cusip number is 38147JEF5.

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