New Issue: Scotiabank sells $6 million of trigger callable contingent yield notes on three indexes

By William Gullotti

Buffalo, N.Y., March 17 – Bank of Nova Scotia priced $6 million of trigger callable contingent yield notes due Sept. 11, 2025 linked to the worst performing of the Euro Stoxx 50 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 9.4% if each index’s closing level is at least 70% of its initial level on the observation date for that period.

The notes will be callable at the issuer’s option at par plus any coupon otherwise due on any quarterly observation date other than the final.

If the notes are not called and each index finishes at or above its coupon barrier, the payout at maturity will be par plus the final coupon.

If the worst performer finishes below the coupon barrier but at or above the 50% trigger level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the worst performer’s final level is below its initial level.

UBS Financial Services Inc. and Scotia Capital (USA) Inc. are the agents.

Issuer:	Bank of Nova Scotia
Issue:	Trigger callable contingent yield notes
Underlying indexes:	Euro Stoxx 50 index, Russell 2000 index, S&P 500 index
Amount:	$6 million
Maturity:	Sept. 11, 2025
Coupon:	9.4% per year, payable quarterly if each index closes at or above its barrier level on the observation date for that period
Price:	Par of $10
Payout at maturity:	If each index finishes at or above coupon barrier, par plus final coupon; if the worst performer finishes below its coupon barrier but at or above trigger level, par; otherwise, full exposure to decline of the worst performer from initial level
Call option:	At par plus any coupon due on any observation date other than the final
Initial levels:	3,512.22 for Stoxx, 1,951.329 for Russell, 4,201.09 for S&P
Coupon barriers:	2,458.55 for Stoxx, 1,365.93 for Russell, 2,940.76 for S&P; 70% of initial levels
Trigger levels:	1,756.11 for Stoxx, 975.665 for Russell, 2,100.55 for S&P; 50% of initial levels
Strike date:	March 7
Pricing date:	March 15
Settlement date:	March 18
Agent:	UBS Financial Services Inc. and Scotia Capital (USA) Inc.
Fees:	2%
Cusip:	06417U107

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