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

By Angela McDaniels

Tacoma, Wash., Feb. 19 - 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 the applicable interest rate multiplied by the proportion of days on which the index closes at or above the trigger level, which will be 75% of the initial index level. The applicable interest rate will be 7% for the first 48 months, 8% for the next 36 months and 9% for the final 36 months. Interest will be payable monthly.

Beginning Feb. 28, 2014, the notes will be callable quarterly at par.

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 064159BS4.

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