CAPPED LEVERAGED INDEX RETURN NOTES® (CAPPED LIRNs®)
|
Capped LIRNs® Linked to the S&P 500® Index
|
Issuer
|
The Bank of Nova Scotia (“BNS”)
|
||
Principal Amount
|
$10.00 per unit
|
||
Term
|
Approximately two years
|
||
Market Measure
|
The S&P 500® Index (Bloomberg symbol: “SPX”)
|
||
Payout Profile at
Maturity
|
• 2-to-1 leveraged upside
exposure to increases in the Market Measure, subject to the Capped Value
• 1-to-1 downside exposure to
decreases in the Market Measure beyond a 10.00% decline, with up to 90.00% of your principal at risk
|
||
Participation Rate
|
200.00%
|
||
Capped Value
|
[$11.65 to $12.05] per unit, a [16.50% to 20.50%] return over the principal amount, to be determined on the pricing date
|
||
Threshold Value
|
90.00% of the Starting Value
|
||
Investment
Considerations
|
This investment is designed for investors who anticipate that the Market Measure will increase moderately over the term of the notes, and are willing to accept a capped return, take
downside risk below a threshold and forgo interim interest payments.
|
||
Preliminary Offering
Documents
|
|||
Exchange Listing
|
No
|
You should read the relevant Preliminary Offering Documents before you invest. Click on the Preliminary Offering Documents hyperlink above or call your Financial Advisor for a hard copy. |
•
|
Depending on the performance of the Market Measure as measured shortly before the maturity date, your investment may result in a loss; there is no guaranteed return of principal.
|
• |
Payments on the notes are subject to the credit risk of BNS, and actual or perceived changes in the creditworthiness of BNS are expected to affect the value of the notes. If BNS becomes insolvent or is
unable to pay its obligations, you may lose your entire investment.
|
• |
Your investment return is limited to the return represented by the Capped Value and may be less than a comparable investment directly in the stocks included in the Market Measure.
|
• |
The initial estimated value of the notes on the pricing date will be less than their public offering price.
|
• |
If you attempt to sell the notes prior to maturity, their market value may be lower than both the public offering price and the initial estimated value of the notes on the pricing date.
|
• |
You will have no rights of a holder of the securities represented by the Market Measure, and you will not be entitled to receive securities or dividends or other distributions by the issuers of those
securities.
|
Hypothetical Percentage Change
from the Starting Value to the
Ending Value
|
Hypothetical Redemption
Amount per Unit
|
Hypothetical Total Rate of Return
on the Notes
|
-100.00%
|
$1.00
|
-90.00%
|
-75.00%
|
$3.50
|
-65.00%
|
-50.00%
|
$6.00
|
-40.00%
|
-40.00%
|
$7.00
|
-30.00%
|
-30.00%
|
$8.00
|
-20.00%
|
-20.00%
|
$9.00
|
-10.00%
|
-10.00%(1)
|
$10.00
|
0.00%
|
-5.00%
|
$10.00
|
0.00%
|
0.00%
|
$10.00
|
0.00%
|
2.00%
|
$10.40
|
4.00%
|
5.00%
|
$11.00
|
10.00%
|
7.00%
|
$11.40
|
14.00%
|
9.25%
|
$11.85(2)
|
16.75%
|
10.00%
|
$11.85
|
16.75%
|
20.00%
|
$11.85
|
16.75%
|
30.00%
|
$11.85
|
16.75%
|
40.00%
|
$11.85
|
16.75%
|
50.00%
|
$11.85
|
16.75%
|
(1) |
This hypothetical percentage change corresponds to the Threshold Value.
|
(2)
|
The Redemption Amount per unit cannot exceed the hypothetical Capped Value.
|