Bank of Nova Scotia has announced:
that it does not intend to exercise its right to redeem the currently outstanding Non-cumulative 5-Year Rate Reset Preferred Shares Series 30 of Scotiabank (the “Preferred Shares Series 30”) on April 26, 2015 and, as a result, subject to certain conditions, the holders of Preferred Shares Series 30 have the right to convert all or part of their Preferred Shares Series 30 on a one-for-one basis into Non-cumulative Floating Rate Preferred Shares Series 31 of Scotiabank (the “Preferred Shares Series 31”) on April 26, 2015. Holders who do not exercise their right to convert their Preferred Shares Series 30 into Preferred Shares Series 31 on such date will retain their Preferred Shares Series 30.
The foregoing conversions are subject to the conditions that: (i) if Scotiabank determines that there would be less than one million Preferred Shares Series 30 outstanding after April 26, 2015, then all remaining Preferred Shares Series 30 will automatically be converted into Preferred Shares Series 31 on a one-for-one basis on April 26, 2015, and (ii) alternatively, if Scotiabank determines that there would be less than one million Preferred Share Series 31 outstanding after April 26, 2015, no Preferred Shares Series 30 will be converted into Preferred Shares Series 31. In either case, Scotiabank shall give a written notice to that effect to holders of Series 30 Preferred Shares no later than April 17, 2015.
The dividend rate applicable to the Preferred Shares Series 30 for the five-year period commencing on April 26, 2015 and ending on April 25, 2020, and the dividend rate applicable to the Preferred Shares Series 31 for the three-month period commencing on April 26, 2015, and ending on July 25, 2015, will be determined on March 27, 2015 and announced by way of a press release on March 30, 2015.
Beneficial owners of Preferred Shares Series 30 who wish to exercise their right of conversion should communicate as soon as possible with their broker or other nominee and ensure that they follow their instructions in order to meet the deadline to exercise such right, which is 5:00 p.m. (EDT) on April 13, 2015.
There are no surprises here, since BNS.PR.Y is a FixedReset, 3.85%+100, that commenced trading 2010-4-12 after being announced March 29.
The Implied Volatility calculation shows a very high value for Implied Volatility; this is reasonable since all the BNS FixedResets are NVCC non-compliant and hence are expected to be redeemed on or prior to 2022-1-31.
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This entry was posted on Thursday, March 5th, 2015 at 9:39 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed.
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BNS.PR.Y To Be Extended
Bank of Nova Scotia has announced:
There are no surprises here, since BNS.PR.Y is a FixedReset, 3.85%+100, that commenced trading 2010-4-12 after being announced March 29.
The Implied Volatility calculation shows a very high value for Implied Volatility; this is reasonable since all the BNS FixedResets are NVCC non-compliant and hence are expected to be redeemed on or prior to 2022-1-31.
Click for Big
This entry was posted on Thursday, March 5th, 2015 at 9:39 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.