BNS.PR.R & BNS.PR.C To Be Redeemed

The Bank of Nova Scotia has announced (on December 21):

that it intends to exercise its right to redeem all outstanding Non-cumulative 5-Year Rate Reset Preferred Shares Series 22 of Scotiabank (the “Series 22 Shares”) and Non-cumulative Floating Rate Preferred Shares Series 23 of Scotiabank (the “Series 23 Shares”) on January 28, 2019, at a price equal to $25.00 per share, together with all declared and unpaid dividends. Formal notice will be issued to holders of the Series 22 Shares and Series 23 Shares in accordance with the share conditions. The redemption has been approved by the Office of the Superintendent of Financial Institutions.

On November 27, 2018, the Board of Directors of Scotiabank announced a quarterly dividend of $0.239375 per Series 22 Share, and $0.215885 per Series 23 Share. This will be the final dividend on the Series 22 Shares and Series 23 Shares, and will be paid on the date of the redemption, January 28, 2019, to shareholders of record at the close of business on January 2, 2019. After January 28, 2019, the Series 22 Shares and Series 23 Shares will cease to be entitled to dividends.

BNS.PR.R was issued as a FixedReset, 5.00%+188, that commenced trading 2008-9-9 after being announced 2008-8-26. It was the eighth FixedReset issue. It reset to 3.83% in January 2014.

BNS.PR.C commenced trading as a FloatingReset +188 that came into being as a partial exchange from BNS.PR.R in January 2014.

These issues were not NVCC-compliant and so are considered to be more of the nature of ‘expensive debt’ rather than ‘cheap equity’ – so they are being redeemed.

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