By William Gullotti
Buffalo, N.Y., Dec. 7 – Bank of Nova Scotia priced $3 million of contingent income autocallable securities due Dec. 4, 2025 linked to the ARK Innovation ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The securities will pay a contingent quarterly coupon at an annualized rate of 10.5% if the underlying ETF closes at or above the 50% downside threshold on the related observation date.
After six months, if the underlying ETF closes at or above its initial level on any quarterly determination date, the securities will be redeemed at par plus the contingent coupon.
If the underlying ETF finishes at or above the 50% downside threshold, the payout at maturity will be par plus the final coupon.
Otherwise, investors will be fully exposed to the ETF’s decline from its initial level.
Scotia Capital (USA) Inc. is the agent with Morgan Stanley Wealth Management handling distribution.
| Issuer: | Bank of Nova Scotia
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| Issue: | Contingent income autocallable securities
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| Underlying fund: | ARK Innovation ETF
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| Amount: | $3 million
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| Maturity: | Dec. 4, 2025
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| Coupon: | 10.5% annualized, payable quarterly if the underlying ETF closes at or above downside threshold on the relevant observation date
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| Price: | Par
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| Payout at maturity: | Par plus contingent coupon if underlying ETF finishes at or above downside threshold; otherwise, 1% loss for each 1% decline from initial level
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| Call: | At par plus contingent coupon if underlying ETF closes at or above initial level on any quarterly determination date after six months
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| Initial level: | $46.90
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| Downside threshold: | $23.45; 50% of initial level
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| Strike date: | Nov. 29
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| Pricing date: | Nov. 30
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| Settlement date: | Dec. 5
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| Agent: | Scotia Capital (USA) Inc. with Morgan Stanley Wealth Management handling distribution
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| Fees: | 2.25%
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| Cusip: | 06417YXM6
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