PrefBlog

The Bank of Nova Scotia has announced:

that it has completed the domestic public offering of Non-cumulative 5-Year Rate Reset Preferred Shares Series 34 (Non-Viability Contingent Capital (NVCC)) (the “Preferred Shares Series 34”).

Scotiabank sold 14 million Preferred Shares Series 34 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 April 25, 2021 yielding 5.50% per annum, as and when declared by the Board of Directors of Scotiabank. The gross proceeds of the offering were $350 million.

The offering was made through a syndicate of underwriters led by Scotia Capital Inc. The Preferred Shares Series 34 commence trading on the Toronto Stock Exchange today under the symbol BNS.PR.E.

On April 26, 2021 and on April 26 every five years thereafter, Scotiabank may, at its option, with the prior approval of the Superintendent of Financial Institutions (Canada), redeem all or any part of the Preferred Shares Series 34 then outstanding at a redemption price which is equal to par. Thereafter, the dividend rate will reset every five years at a rate equal to 4.51% over the 5-year Government of Canada bond yield. Holders of Preferred Shares Series 34 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 35 (Non-Viability Contingent Capital (NVCC)) (the “Preferred Shares Series 35”) of Scotiabank on April 26, 2021 and on April 26 every five years thereafter.

Holders of the Preferred Shares Series 35 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 4.51%, as and when declared by the Board of Directors of Scotiabank. Holders of Preferred Shares Series 35 will, subject to certain conditions, have the right to convert all or any part of their shares to Preferred Shares Series 34 on April 26, 2026 and on April 26 every five years thereafter.

BNS.PR.E is a FixedReset 5.50%+451, announced 2015-12-8. It will be tracked by HIMIPref™ and has been assigned to the FixedResets subindex.

The issue traded 1,123,441 shares today in a range of 25.12-28 before closing at 25.20-26, 2×15. Vital statistics are:

DBRS finalized the rating at Pfd-2.

This entry was posted on Friday, December 18th, 2015 at 2:59 am 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.