Scotiabank plans callable contingent interest range accrual barrier notes linked to Russell 2000

By Angela McDaniels

Tacoma, Wash., Feb. 15 - Bank of Nova Scotia plans to price callable contingent interest range accrual barrier notes due Feb. 28, 2023 linked to the Russell 2000 index, according to a 424B5 filing with the Securities and Exchange Commission.

The interest rate will be 8% for the first year. Beginning Feb. 28, 2014, the interest rate will be (a) four times the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate, subject to a minimum of zero and a maximum of 8% per year, multiplied by (b) the proportion of days on which the index closes at or above the trigger level, which will be 75% of the initial index level. Interest will be payable quarterly.

Beginning Feb. 28, 2014, the notes will be callable at par on any interest payment date.

If the notes are not called and the final index level is at least 50% of the initial index level, the payout at maturity will be par. Otherwise, investors will be fully exposed to the index's decline from its initial level.

Scotia Capital (USA) Inc. is the underwriter.

The notes are expected to price Feb. 22 and settle Feb. 27.

The Cusip number is 064159BQ8.

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