By William Gullotti
Buffalo, N.Y., April 20 – Bank of Nova Scotia priced $4.92 million of callable contingent income securities due April 17, 2025 linked to the S&P 500 index, 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% if the underlying index closes at or above the 80% downside threshold on the related observation date.
The securities may be called at par plus any coupon otherwise due on any quarterly valuation date.
If the underlying index finishes at or above the 80% downside threshold, the payout at maturity will be par plus the final coupon. Otherwise, investors will be fully exposed to the decline of the index from initial level.
Scotia Capital (USA) Inc. is the agent with Morgan Stanley Wealth Management handling distribution.
| Issuer: | Bank of Nova Scotia
|
| Issue: | Callable contingent income securities
|
| Underlying index: | S&P 500 index
|
| Amount: | $4,921,000
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| Maturity: | April 17, 2025
|
| Coupon: | 10% annualized, payable quarterly if the underlying index closes at or above downside threshold on the relevant observation date
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon if underlying index finishes at or above downside threshold; otherwise, 1% loss for every 1% decline from initial level
|
| Call option: | At par plus any contingent coupon otherwise due on any quarterly determination date
|
| Initial level: | 4,137.64
|
| Downside threshold: | 3,310.112; 80% of initial level
|
| Pricing date: | April 14
|
| Settlement date: | April 19
|
| Agent: | Scotia Capital (USA) Inc. with Morgan Stanley Wealth Management handling distribution
|
| Fees: | 2%
|
| Cusip: | 06417YGH6
|
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