Published on 11/1/2021 in the Prospect News Structured Products Daily.
New Issue: Scotiabank sells $31.59 million autocallable market-linked step-up notes on S&P 500
By Marisa Wong
Los Angeles, Nov. 1 – Bank of Nova Scotia priced $31.59 million of 0% autocallable market-linked step-up notes due Oct. 29, 2027 linked to the S&P 500 index, according to a 424B2 with the Securities and Exchange Commission.
Scotiabank is selling 3,160,812 units with a face amount of $10 each, or a total principal amount of $31,608,120, for a total price of $31,592,636.70. An individual investor will purchase 309,666 units at $9.95 per unit; the remainder will be sold to the public at par.
The notes will be called at par plus a call premium of 4.75% per year if the index closes at or above its initial level on any annual observation date.
If the index finishes above the step-up value, 130% of the initial level, the payout at maturity will be par plus the index gain.
If the index finishes flat or gains by up to the step-up level, the payout will be par plus the step-up payment of 30%.
If the index falls by up to 15%, the payout will be par. Otherwise, investors will lose 1% for each 1% decline of the index beyond 15%.
BofA Securities, Inc. is the agent.
| Issuer: | Bank of Nova Scotia
|
| Issue: | Autocallable market-linked step-up notes
|
| Underlying index: | S&P 500
|
| Amount: | $31,608,120 (3,160,812 units)
|
| Proceeds: | $31,592,636.70
|
| Maturity: | Oct. 29, 2027
|
| Coupon: | 0%
|
| Price: | $9.95 for 309,666 units; par of $10 for remainder
|
| Payout at maturity: | If the index finishes above the step-up level, par plus the index gain; if the index finishes flat or gains up to the step-up level, par plus 30%; par if index falls by up to 15%; otherwise, 1% loss for each 1% index decline beyond 15%
|
| Call: | At par plus 4.75% per year if the index closes at or above its initial level on any annual observation date
|
| Initial level: | 4,596.42
|
| Step-up value: | 5,975.35, 130% of initial level
|
| Threshold value: | 3,906.96, 85% of initial level
|
| Pricing date: | Oct. 28
|
| Settlement date: | Nov. 4
|
| Agent: | BofA Securities, Inc.
|
| Fees: | 2%
|
| Cusip: | 06417X648
|
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