Published on 3/27/2014 in the Prospect News Structured Products Daily.
New Issue: Scotiabank prices $500,000 contingent interest range accrual barrier notes on S&P 500
By Toni Weeks
San Luis Obispo, Calif., March 27 - Bank of Nova Scotia priced $500,000 of callable contingent interest range accrual barrier notes due March 28, 2029 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will accrue at the applicable rate for each day during the quarterly interest period that the index closes at or above the trigger level, 70% of the initial level. The applicable rate is 6% per year for the first three years, 6.5% for years four through six, 7.5% for years seven through nine, 8% for years 10 through 12 and 9.5% for years 13 through 15. Interest is payable quarterly.
The notes may be called in whole, but not in part, on each quarterly call date beginning March 28, 2015.
If the index finishes at or above the barrier level, 50% of the initial level, the payout at maturity will be par. Otherwise, investors will share in losses.
Scotia Capital (USA) Inc. is the underwriter.
| Issuer: | Bank of Nova Scotia
|
| Issue: | Callable contingent interest range accrual barrier notes
|
| Underlying index: | S&P 500
|
| Amount: | $500,000
|
| Maturity: | March 28, 2029
|
| Coupon: | Interest will accrue at applicable rate for each day during the quarterly interest period that index closes at or above trigger level; applicable rate is 6% per year for first three years, 6.5% for years four through six, 7.5% for years seven through nine, 8% for years 10 through 12 and 9.5% after that until maturity
|
| Price: | Par
|
| Payout at maturity: | Par if index finishes at or above 50% of the initial level; otherwise, exposure to losses
|
| Call: | In whole beginning March 28, 2015
|
| Initial index level: | 1,865.62
|
| Trigger level: | 1,305.93, 70% of initial level
|
| Barrier level: | 932.81, 50% of initial level
|
| Pricing date: | March 25
|
| Settlement date: | March 28
|
| Underwriter: | Scotia Capital (USA) Inc.
|
| Fees: | 3%
|
| Cusip: | 064159DT0
|
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