BNS.PR.Z Prospectus – ScotiaBank Preferred Shares Series 32
The following is a set of excerpts from the prospectus document for the Non-cumulative 5-Year Rate Reset Preferred Shares Series 32 (Non-Viability Contingent Capital (NVCC)). The excerpts, highlight the most relevant information, an investor should know when analyzing this preferred. A link to the prospectus is provided lower in this page. The original document for BNS.PR.Z Prospectus – ScotiaBank Preferred Shares Series 32 was used for the excerpts and the important information was highlighted for quick access.
Follow this link for additional information on ScotiaBank and a comparison of all ScotiaBank preferred shares available in the Canadian Market today.
Excerpt: Size and initial yield
The holders of Preferred Shares Series 32 shall be entitled to receive and the Bank shall pay thereon as and when declared by the Board of Directors of the Bank, subject to the provisions of the Bank Act (as hereinafter defined), non-cumulative preferential cash dividends at the rates and times herein provided.
During the Initial Fixed Rate Period (as hereinafter defined), dividends on the Preferred Shares Series 32 shall be payable quarterly at the Initial Fixed Dividend Rate (as hereinafter defined). Accordingly, on each Dividend Payment Date (as hereinafter defined) during the Initial Fixed Rate Period, other than April 27, 2011, the dividend payable, if declared, shall be equal to $0.23125 per share. The first of such dividends, if declared, shall be paid on April 27, 2011 and shall be $0.21541 per share. “Initial Fixed Dividend Rate” means 3.70% per annum; “Initial Fixed Rate Period” means the period commencing February 1, 2011 and ending on and including February 1, 2016;
Excerpt: Reset Date and Yield Terms
“Annual Fixed Divided Rate” means, for any Subsequent Fixed Rate Period, the rate (expressed as a percentage rate rounded down to the nearest one hundred-thousandth of one percent (with 0.000005% being rounded up)) equal to the sum of the Government of Canada Yield on the applicable Fixed Rate Calculation Date plus 1.34%;
Excerpt: Conversion Terms
Holders of Preferred Shares Series 32 shall have the right, at their option, on February 2, 2016 and on February 2 in every fifth year thereafter (a “Series 32 Conversion Date”), to convert, subject to the terms and provisions hereof and to the provisions of the Bank Act and the payment or delivery to the Bank of evidence of payment of tax (if any) payable, all or any Preferred Shares Series 32 registered in their name into Preferred Shares Series 33 (as hereinafter defined) on the basis of one (1) Preferred Share Series 33 for each Preferred Share Series 32. The Bank shall give notice in writing to the then holders of the Preferred Shares Series 32 of the conversion privilege provided for herein (the “Conversion Privilege”) and such notice shall (i) set out the Series 32 Conversion Date, (ii) include instructions to such holders as to the method by which such Conversion Privilege may be exercised, as described in Section (vii)C and (iii) be given at least 30 days and not more than 60 days prior to the applicable Series 32 Conversion Date. On the 30th day prior to each Series 32 Conversion Date, the Bank shall give notice in writing to the then holders of the Preferred Shares Series 32 of the Annual Fixed Dividend Rate determined by the Bank for the succeeding Subsequent Fixed Rate Period. Each such notice shall be given by mailing such notice by ordinary unregistered first class prepaid mail to the address of each such holder as it appears on the books of the Bank, or if the address of any such holder does not so appear, then to the last known address of such holder.
“Floating Quarterly Dividend Rate” means, for any Quarterly Floating Rate Period, the rate (expressed as a percentage rate rounded down to the nearest one hundredthousandth of one percent (with 0.000005% being rounded up)) equal to the sum of the T-Bill Rate on the applicable Floating Rate Calculation Date plus 1.34%;
BNS.PR.Z Prospectus – ScotiaBank Preferred Shares Series 32. Original Document
I have presented the most important information regarding the Series 34 preferreds. If you need to go through the original and complete document for BNS.PR.Z Prospectus – ScotiaBank Preferred Shares Series 32 is available here.