Scotiabank plans contingent interest barrier notes linked to Facebook

By Angela McDaniels

Tacoma, Wash., June 6 – Bank of Nova Scotia plans to price autocallable contingent interest barrier notes due June 27, 2017 linked to the common stock of Facebook Inc., according to a 424B5 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at a rate of 14% per year if Facebook stock closes at or above the barrier price, 80% of the initial share price, on the valuation date for that quarter.

If the stock finishes at or above the barrier price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.

Beginning June 24, 2015, the notes will be automatically called at par plus the contingent coupon if Facebook stock closes at or above the initial price on any quarterly valuation date.

Scotia Capital (USA) Inc. is the underwriter.

The notes are expected to price June 25 and settle June 27.

The Cusip number is 064159CM6.

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