New Issue: Scotia sells $2.1 million contingent coupon market-linked autocalls on funds

By Wendy Van Sickle

Columbus, Ohio, Jan. 26 – Bank of Nova Scotia priced $2.1 million of market-linked securities – autocallable with contingent downside due Jan. 22, 2027 linked to the performance of the Energy Select Sector SPDR fund, the Financial Select Sector SPDR fund, the Technology Select Sector SPDR fund and the Health Care Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a quarterly coupon at an annual rate of 11.3% if each fund closes above 65% of its initial level on the related observation date.

The notes will be automatically called at par if each fund closes at or above initial levels on any quarterly observation date after six months.

If the notes are not called and each fund finishes at or above its 60% threshold level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the worst performer’s final level is less than its initial level.

Scotia Capital (USA) Inc. and Wells Fargo Securities, LLC are the agents.

Issuer:	Bank of Nova Scotia
Issue:	Market-linked securities – autocallable with contingent downside
Underlying funds:	Energy Select Sector SPDR fund, Financial Select Sector SPDR fund, Technology Select Sector SPDR fund, Health Care Select Sector SPDR fund
Amount:	$2.1 million
Maturity:	Jan. 22, 2027
Coupon:	11.3%, payable quarterly if each fund closes above coupon thresholds on observation date
Level:	Par
Payout at maturity:	Par if each fund finishes at or above threshold level; otherwise, full exposure to decline of worst performer from initial level
Call:	Automatically at par if each fund closes at or above initial levels on any quarterly observation date after six months
Initial levels:	$80.17 for Energy, $37.93 for Financial, $200.17 for Technology, $139.46 for Health Care
Coupon thresholds:	$52.1105 for Energy, $24.6545 for Financial, $130.1105 for Technology, $90.649 for Health Care; 65% of initial levels
Threshold levels:	$48.102 for Energy, $22.758 for Financial, $120.102 for Technology, $83.676 for Health Care; 60% of initial levels
Pricing date:	Jan. 19
Settlement date:	Jan. 24
Agents:	Scotia Capital (USA) Inc. and Wells Fargo Securities, LLC
Fees:	2.325%
Cusip:	06417YF95

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