Published on 2/26/2014 in the Prospect News Structured Products Daily.
New Issue: Scotiabank sells $1 million callable contingent interest barrier notes on S&P 500
By Marisa Wong
Madison, Wis., Feb. 26 - Bank of Nova Scotia priced $1 million of callable contingent interest range accrual barrier notes due Feb. 27, 2029 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly payment equal to the applicable rate times the number of days that the index closes at or above the 70% trigger level. The applicable rate is 6% for the first 12 quarterly interest periods, 7% for the next 12 quarterly interest periods, 7.5% for the next 12 quarterly periods, 8% for the 12 quarterly periods after that and 11% for the final 12 quarterly periods.
The notes may be called in whole at par plus the contingent interest payment, if any, on any quarterly call date after one year.
If the index finishes at or above the 50% barrier level, the payout at maturity will be par. Otherwise, investors will share in any losses.
Scotia Capital (USA) Inc. is the underwriter.
| Issuer: | Bank of Nova Scotia
|
| Issue: | Callable contingent interest range accrual barrier notes
|
| Underlying index: | S&P 500
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| Amount: | $1 million
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| Maturity: | Feb. 27, 2029
|
| Coupon: | Contingent quarterly payment equal to applicable rate times number of days that index closes at or above trigger level; applicable rate is 6% for first 12 quarterly interest periods, 77% for next 12 quarterly interest periods, 7.5% for next 12 quarterly periods, 8% for 12 quarterly periods after that and 11% for the final 12 quarterly periods
|
| Price: | Par
|
| Payout at maturity: | If index finishes at or above barrier level, par; otherwise, investors will share in any losses
|
| Call option: | In whole at par plus contingent payment, if any, on any quarterly call date beginning Feb. 27, 2015
|
| Initial level: | 1,847.61
|
| Trigger level: | 1,293.33, 70% of initial level
|
| Barrier level: | 923.81, 50% of initial level
|
| Pricing date: | Feb. 24
|
| Settlement date: | Feb. 27
|
| Agent: | Scotia Capital (USA) Inc.
|
| Fees: | 3%
|
| Cusip: | 064159DR4
|
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