Published on 12/2/2015 in the Prospect News Canadian Bonds Daily and Prospect News Investment Grade Daily.
New Issue: Scotiabank sells C$750 million of 3.367% 10-year bonds at par
By Cristal Cody
Tupelo, Miss., Dec. 2 – The Bank of Nova Scotia sold C$750 million of 3.367% 10-year subordinated debentures at par, according to a final term sheet.
The Basel III-compliant non-viability contingent capital debentures due Dec. 8, 2025 (A3/BBB+/DBRS: A) priced in line with guidance at a spread of 245 basis points over the interpolated Government of Canada bond curve.
Scotia Capital Inc. was the bookrunner.
The notes have an interest reset date on Dec. 8, 2020 at three-month CDOR plus 219 bps.
Scotiabank may redeem the debentures on or after Dec. 8, 2020 at par plus accrued and unpaid interest.
Proceeds from the transaction will be used for general banking purposes.
The Bank of Nova Scotia is a Toronto-based financial services company.
| Issuer: | Bank of Nova Scotia
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| Amount: | C$750 million
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| Maturity: | Dec. 8, 2025
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| Securities: | Subordinated notes
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| Bookrunner: | Scotia Capital Inc.
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| Co-managers: | RBC Dominion Securities Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc., TD Securities Inc., National Bank Financial Inc., Desjardins Securities Inc., Merrill Lynch Canada Inc., Citigroup Global Markets Canada Inc., J.P. Morgan Securities Canada Inc., Laurentian Bank Securities, Inc. and Manulife Securities Inc.
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| Coupon: | 3.367%; resets Dec. 8, 2020 at three-month CDOR plus 219 bps
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| Price: | Par
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| Yield: | 3.367%
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| Spread: | 245 bps over interpolated Government of Canada bond curve
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| Call feature: | On or after Dec. 8, 2020 at par plus accrued and unpaid interest
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| Pricing date: | Dec. 1
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| Settlement date: | Dec. 8
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| Ratings: | Moody’s: A3
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| Standard & Poor’s: BBB+
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| DBRS: A
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| Distribution: | Canada
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| Price talk: | 245 bps over interpolated Government of Canada bond curve
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