By William Gullotti
Buffalo, N.Y., April 12 – Bank of Nova Scotia priced $7.4 million of Strategic Accelerated Redemption Securities due April 19, 2024 linked to an equally-weighted basket, according to a 424B2 filing with the Securities and Exchange Commission.
Scotia sold 740,306 units with a face amount of $10 each, for a total principal amount of $7,403,060. The issuer sold 400,000 units to an individual investor at $9.975 per unit and the remainder to the public at par of $10, for total proceeds of $7,393,060.
The basket consists of the SPDR Gold Shares and the iShares Silver Trust.
The notes will be called at par plus an annualized call premium of 17.5% if the closing level of the basket is equal to or greater than its starting value on any quarterly observation date after six months.
If the notes are not called, the payout at maturity will be par of $10 plus the return of the basket with full exposure to the decline.
BofA Securities, Inc. is the agent.
| Issuer: | Bank of Nova Scotia
|
| Issue: | Strategic Accelerated Redemption Securities
|
| Underlying basket: | SPDR Gold Shares, iShares Silver Trust; equal weights
|
| Principal amount: | $7,403,060
|
| Proceeds: | $7,393,060
|
| Maturity: | April 19, 2024
|
| Coupon: | 0%
|
| Price: | $9.975 per unit for 400,000 units; par of $10 for remainder
|
| Payout at maturity: | Full exposure to loss if basket declines
|
| Call: | Par plus 17.5% annualized call premium if the closing level of the basket is equal to or greater than its starting value on any quarterly observation date after six months
|
| Initial levels: | $186.49 for SPDR, $22.89 for iShares
|
| Pricing date: | April 6
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| Settlement date: | April 14
|
| Agent: | BofA Securities, Inc.
|
| Fees: | 1% for 400,000 units; 1.25% for remainder
|
| Cusip: | 06418G859
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