/NOT FOR DISTRIBUTION OR DISSEMINATION IN THE UNITED STATES/
TORONTO, Oct. 12, 2018 /CNW/ - The Bank of Nova Scotia ("Scotiabank") (TSX, NYSE: "BNS")
today announced that it has completed the domestic public offering
of Non-cumulative 5-Year Rate Reset Preferred Shares Series 40
(Non-Viability Contingent Capital (NVCC)) (the "Preferred Shares
Series 40").
Scotiabank sold 12 million Preferred Shares Series 40 at a price
of $25.00 per share and holders will
be entitled to receive a non-cumulative quarterly fixed dividend
for the initial period ending January 26,
2024 yielding 4.85% per annum, as and when declared by the
Board of Directors of Scotiabank. The gross proceeds of the
offering were $300 million.
The offering was made through a syndicate of underwriters led by
Scotia Capital Inc. The Preferred Shares Series 40 commenced
trading on the Toronto Stock Exchange today under the symbol
BNS.PR.I.
On January 27, 2024 and on
January 27 every five years
thereafter, Scotiabank may, at its option, subject to regulatory
approval, redeem all or any number of the then outstanding
Preferred Shares Series 40 at a redemption price of $25 per share. Thereafter, the dividend rate will
reset every five years at a rate equal to 2.43% over the 5-year
Government of Canada bond
yield. Holders of Preferred Shares Series 40 will, subject to
certain conditions, have the right to convert all or any part of
their shares to Non-cumulative Floating Rate Preferred Shares
Series 41 (Non-Viability Contingent Capital (NVCC)) (the "Preferred
Shares Series 41") of Scotiabank on January
27, 2024 and on January 27
every five years thereafter.
Holders of the Preferred Shares Series 41 will be entitled to
receive a non-cumulative quarterly floating dividend at a rate
equal to the 3-month Government of Canada Treasury Bill yield plus
2.43%, as and when declared by the Board of Directors of
Scotiabank. Holders of Preferred Shares Series 41 will,
subject to certain conditions, have the right to convert all or any
part of their shares to Preferred Shares Series 40 on January 27, 2029 and on January 27 every five years thereafter.
The Preferred Shares Series 40 have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the "Securities Act"), or under any state securities laws
and, subject to certain exceptions, may not be offered, sold, or
delivered directly or indirectly, within the United States of America, its territories
and possessions or to, or for the account or benefit of, U.S.
persons. This release does not constitute an offer to sell or a
solicitation to buy the Preferred Shares Series 40 in the United States.
About Scotiabank
Scotiabank is Canada's international bank and a leading
financial services provider in the Americas. We are dedicated to
helping our 25 million customers become better off through a broad
range of advice, products and services, including personal and
commercial banking, wealth management and private banking,
corporate and investment banking, and capital markets. With a team
of more than 96,000 employees and assets of $947 billion (as at July
31, 2018), Scotiabank trades on the Toronto Stock Exchange
(TSX: BNS) and New York Stock Exchange (NYSE: BNS). For more
information, please visit www.scotiabank.com and follow us on
Twitter @ScotiabankViews.
SOURCE Scotiabank
