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UPDATE 1-Goldman prices FDIC-backed euro bond sale

Mon Dec 1, 2008 1:18pm EST

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(Adds final price, background)

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NEW YORK, Dec 1 (Reuters) - Goldman Sachs (GS.N) priced a three-year euro benchmark debt issue that will be guaranteed by the Federal Deposit Insurance Corp at the tighter end of its earlier announced price guidance, IFR said on Monday, citing sources.

The "AAA"-rated bond priced at mid-swaps plus 45 basis points, with earlier guidance indicating it would be priced at mid-swaps plus 45 to 50 basis points, said IFR, a Thomson Reuters publication.

Goldman last week sold $5 billion of three-year notes backed by the FDIC, priced at 99.612 to yield 3.367 percent, or 200 basis points over comparable Treasuries. The notes were originally offered at a yield spread of 220 basis points.

(Reporting by Natalie Harrison and Karen Brettell; Editing by Dan Grebler)



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