Scotiabank plans callable contingent interest barrier notes on S&P 500

By Jennifer Chiou

New York, March 6 - Bank of Nova Scotia plans to price callable contingent interest range accrual barrier notes due March 28, 2029 linked to the S&P 500 index, according to a 424B5 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly payment equal to the applicable rate times the number of days that the index closes at or above the 70% trigger level. The applicable rate is 6% for the first 12 quarterly interest periods, 6.5% for the next 12 quarterly interest periods, 7.5% for the next 12 quarterly periods, 8% for the 12 quarterly periods after that and 9.5% for the final 12 quarterly periods.

The notes may be called in whole at par plus the contingent interest payment, if any, on any quarterly call date after one year.

If the index finishes at or above the 50% barrier level, the payout at maturity will be par. Otherwise, investors will share in any losses.

The notes (Cusip: 064159DT0) are expected to price on March 25 and settle on March 28.

Scotia Capital (USA) Inc. is the underwriter.

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