Scotiabank to sell Leveraged Index Return Notes tied to index basket

By Devika Patel

Knoxville, Tenn., Dec. 31 – Bank of Nova Scotia intends to price Leveraged Index Return Notes due January 2021 linked to a basket of unequally weighted indexes, according to a 424 filing with the Securities and Exchange Commission.

The notes are guaranteed by Bank of America Corp.

The basket components are the Euro Stoxx 50 index with a 40% weight, the FTSE 100 index with a 20% weight, the Nikkei Stock Average index with a 20% weight, the Swiss Market index with a 7.5% weight, the S&P/ASX 200 index with a 7.5% weight and the Hang Seng index with a 5% weight.

If the basket return is positive, the payout at maturity will be par plus 140% to 160% of the basket return, with the exact participation rate to be set at pricing.

Investors will receive par if the basket remains flat or falls by up to 10% and will lose 1% for each 1% decline beyond 10%.

BofA Merrill Lynch is the agent.

The notes are expected to price and settle in January.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.