Scotiabank plans callable 20-year steepener notes linked to CMS rates

By Susanna Moon

Chicago, June 9 – Bank of Nova Scotia plans to price callable steepener notes due June 27, 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.

Interest will be fixed at 12% for the first year. After that, it will accrue at 4 times the spread of the 30-year CMS rate over the two-year CMS rate minus 50 basis points, up to a maximum rate of 12% per year. Interest will be 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.

Scotia Capital (USA) Inc. is the underwriter.

The notes will price on June 25 and settle on June 27.

The Cusip number is 064159FA9.

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