Scotiabank to price callable steepener notes with 9% initial rate

By Jennifer Chiou

New York, July 10 - Bank of Nova Scotia plans to price callable steepener notes due July 29, 2033, according to a 424B5 filing with the Securities and Exchange Commission.

Interest will accrue at 9% for the first year. After that, the rate will be four times the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate minus 25 basis points, subject to a maximum rate of 10%. Interest is payable quarterly and cannot be less than zero.

The payout at maturity will be par.

The notes will be callable at par on any interest payment date after one year.

The notes (Cusip: 064159CP9) are expected to price on July 25 and settle on July 30.

Scotia Capital (USA) Inc. is the underwriter.

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