By Susanna Moon
Chicago, Feb. 28 - Bank of Nova Scotia priced $1.5 million of callable contingent interest range accrual barrier notes due Feb. 28, 2023 linked to the Russell 2000 index, according to a 424B5 filing with the Securities and Exchange Commission.
Interest rate will be 8% for the first year. Beginning Feb. 28, 2014, it will be 4 times the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate, up to a maximum of rate of 8%, for each day that the index closes at or above the 75% trigger level. Interest will be payable quarterly and cannot be less than zero.
The notes will be callable at par on any interest payment date after one year.
The payout at maturity will be par if the index finishes at or above the 50% barrier level.
Otherwise, investors will be fully exposed to any losses.
Scotia Capital (USA) Inc. is the underwriter.
| Issuer: | Bank of Nova Scotia
|
| Issue: | Callable contingent interest range accrual barrier notes
|
| Underlying index: | Russell 2000
|
| Amount: | $1.5 million
|
| Maturity: | Feb. 28, 2023
|
| Coupon: | Interest will accrue at 8% for one year; then, 4 times spread of the 30-year CMS rate over the two-year CMS rate, capped at 8%, for each day that index closes at or above trigger level; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par if index finishes at or above barrier level; otherwise, full exposure to any losses
|
| Call: | At par beginning Feb. 28, 2014
|
| Initial index level: | 916.16
|
| Trigger level: | 687.12, 75% of initial level
|
| Barrier level: | 458.08, 50% of initial level
|
| Pricing date: | Feb. 22
|
| Settlement date: | Feb. 27
|
| Underwriter: | Scotia Capital (USA) Inc.
|
| Fees: | 3.5%
|
| Cusip: | 064159BQ8
|
© 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.
