Scotiabank to price callable steepener notes linked to CMS rates

By Angela McDaniels

Tacoma, Wash., Jan. 3 - Bank of Nova Scotia plans to price callable steepener notes due Jan. 30, 2034 linked to the 30-year Constant Maturity Swap rate and the two-year Constant Maturity Swap rate, according to a 424B5 filing with the Securities and Exchange Commission.

The interest rate will be 10.5% for the first year. After that, the rate will be four times the spread of the 30-year CMS rate over the two-year CMS rate minus 25 basis points, subject to a maximum rate of 10.5% per year. Interest will be payable quarterly and cannot be less than zero.

The payout at maturity will be par.

After one year, the notes will be callable at par on any interest payment date.

Scotia Capital (USA) Inc. is the underwriter.

The notes are expected to price Jan. 27 and settle Jan. 30.

The Cusip number is 064159DF0.

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