Scotiabank plans callable range accrual barrier notes linked to S&P 500

By Susanna Moon

Chicago, Sept. 8 – Bank of Nova Scotia plans to price callable contingent interest range accrual barrier notes due Sept. 29, 2024 linked to the S&P 500 index, according to a 424B5 filing with the Securities and Exchange Commission.

Interest will accrue at a rate for each day that the index closes at or above 75% barrier level. The rate will be 5.5% for the first 12 quarterly periods, stepping up to 6.5% for the next 12 quarters and to 7.5% for the final 16 quarters. Interest is payable quarterly and cannot be less than zero.

The payout at maturity will be par unless the index finishes below the 50% trigger level, in which case investors will be fully exposed to any losses.

The notes will be callable at par on any interest payment date beginning Sept. 29, 2015.

Scotia Capital (USA) Inc. and Barclays are the underwriters.

The notes will price on Sept. 24 and settle on Sept. 29.

The Cusip number is 064159FU5.

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