Scotiabank plans 8.5% one-year STEP Income Securities tied to Ford

By Susanna Moon

Chicago, March 27 – Bank of Nova Scotia plans to price 8.5% STEP Income Securities due April 2018 linked to Ford Motor Co. common shares, according to an FWP filing with the Securities and Exchange Commission.

Interest will be payable quarterly.

If the price of Ford shares finishes at or above the step level – 108.5% of the initial price – the payout at maturity will be par of $10 plus a step payment of 1% to 5% that will be set at pricing.

If the stock finishes at or above the initial level but below the step level, the payout at maturity will be par.

Investors will be exposed to any losses.

BofA Merrill Lynch is the agent.

The notes will price in March and settle in April.

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