BNS Gold Miners Autocallable Notes, Series 1

Transcription

1 BNS Gold Miners Autocallable Notes, Series 1 Principal at Risk Notes Due February 25, 2018 February 6, 2015 A Bank of Nova Scotia short form base shelf prospectus dated December 19, 2014, a prospectus supplement thereto dated January 5, 2015 and pricing supplement No. 114 thereto dated February 6, 2015 (together, the Prospectus ) have been filed with the securities regulatory authorities in each of the provinces and territories of Canada. A copy of the Prospectus, and any amendments thereto that have been filed, is required to be delivered with this document. The Prospectus, and any amendments thereto, contains important information relating to the securities described in this document. This document does not provide full disclosure of all material facts relating to the securities offered and investors should read the Prospectus, and any amendments thereto, for disclosure of those facts, especially risk factors relating to the securities offered, before making an investment decision. A copy of the short form base shelf prospectus, the prospectus supplement and the pricing supplement can also be obtained at Unless the context otherwise requires, terms not otherwise defined herein will have the meaning ascribed thereto in the Prospectus. GRAPHICAL DESCRIPTION OF PAYOFF INVESTMENT HIGHLIGHTS Issuer: The Bank of Nova Scotia Reference ETF*: Market Vectors Gold Miners ETF Potential Return: The Fixed Return for the 2016 and the s and the Final is 10.00%, 20.00% and 30.00%, respectively. The Fixed Return is equivalent to an annualized return of 10.00%, 9.54% and 9.14%, respectively. Investors may also receive an additional return of 5% of the amount, if any, by which the Price Return exceeds the Fixed Return on the applicable. s: The second Business Day prior to February 25, 2016, February 25, 2017 and February 26, Barrier Protection: The Notes provide contingent downside protection at maturity if the Final Unit Price is above the Barrier Price (which is 60% of the Initial on the Final. If the Final Unit Price is equal to or less than the Barrier Price on the Final, an investor in the Notes will be fully exposed to any negative price performance of the Reference Unit, meaning that all or substantially all such investor s investment may be lost (subject to a minimum principal repayment of $1.00 per Note). * The price of the Reference Unit reflects only the price appreciation or depreciation of the Reference Unit and does not reflect the payment of distributions on the Reference Unit. The annual distribution yield on the Reference Unit as of January 30, 2015 was 0.55%, representing an aggregate distribution yield of approximately 1.66% annually compounded over the approximately three year term of the Notes on the assumption that the distributions paid on the Reference Unit remain constant. FundSERV Available Until Issue Maturity (if not called) Min. Investment SSP936 February 19, 2015 February 25, 2015 February 26, 2018 CAD $5,000 CONTACT INFORMATION Western Canada Ontario & Eastern Canada Quebec National Todd Thal: Chris Janson: Todd Chalmers: Evelyn Kamiliotis: Stephanie Kirin: Toll Free:

2 KEY TERMS Issuer: Principal Issue : CUSIP: Maturity : Autocall: Minimum Investment: Reference Unit: The Bank of Nova Scotia (the Bank ) $ per Note. The Notes will be issued on or about February 25, 2015, or such other date as may be agreed between the Bank and Scotia Capital Inc. and Laurentian Bank Securities Inc H3 February 25, 2018 (approximately a three year term), subject to the Notes being automatically called by the Bank. The Notes will be automatically called (i.e., redeemed) by the Bank and a Variable Return will be paid to investors if the Closing Unit Price on any is greater than or equal to the Initial Unit Price. If the Closing Unit Price on any is not greater than or equal to the Initial Unit Price, the Notes will not be automatically called by the Bank and the Variable Return will not be paid to investors. $5,000 (50 Notes) Initial : February 25, 2015 s: The Notes will provide exposure to the price performance of the units of the Market Vectors Gold Miners ETF. The Reference ETF is an exchange-traded fund that seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the NYSE Arca Gold Miners Index. The Reference Unit is listed on the New York Stock Exchange Arca (NYSE Arca) under the symbol GDX. The Notes do not represent an interest in the Reference Unit or the Reference ETF and holders will have no right or entitlement to the Reference Unit including any distributions paid on it. The price of the Reference Unit reflects only the price appreciation or depreciation of the Reference Unit and does not reflect the payment of distributions on the Reference Unit. The annual distribution yield on the Reference Unit as of January 30, 2015 was 0.55%, representing an aggregate distribution yield of approximately 1.66% annually compounded over the approximately three year term of the Notes on the assumption that the distributions paid on the Reference Unit remain constant. There is no requirement for the Bank to hold any interest in the Reference Unit. The Closing Unit Price will be observed annually on the second Business Day prior to February 25, 2016, and February 25, 2017 (each, an Autocall ) and the second Business Day prior to the Maturity (the Final ), provided, in each case, that if such day is not an Exchange Business Day, then the Autocall or the Final, as the case may be, will be the immediately preceding Exchange Business Day, subject to the occurrence of a Market Disruption Event. The amount payable on the Notes if they are automatically called by the Bank or at maturity will be calculated as follows: If the Closing Unit Price on an Autocall or the Final is greater than or equal to the Initial Unit Price, the Amount will equal: Principal Amount + Variable Return If the Price Return on the Final is less than 0.00% and the Final Unit Price is greater than the Barrier Price on the Final, the Amount will equal: Principal Amount If the Price Return on the Final is less than 0.00% and the Final Unit Price is equal to or less than the Barrier Price on the Final, the Amount will equal: Principal Amount + (Principal Amount x Price Return) The Amount may be less than the Principal Amount invested by an investor. The Maturity Redemption Amount will be subject to a minimum principal repayment of $1.00 per Note. Price Return: Initial Unit Price: Final Unit Price: Barrier Price: Variable Return: Final Unit Price Initial Unit Price Initial Unit Price The official closing price of the Reference Unit on a given day as announced by the Exchange on an Exchange Business Day. The Closing Unit Price on the Initial, provided that if the Initial is not an Exchange Business Day, the Initial Unit Price will be determined as of the first succeeding day that is an Exchange Business Day. The Closing Unit Price on an Autocall or the Final. 60% of the Initial Unit Price The Variable Return, if any, applicable to each respective will be calculated using the following formula: Principal Amount x (Fixed Return + Additional Return) Fixed Return Additional Return (if Price Return > Fixed Return) 10.00% (Price Return less 10.00%) x 5% 20.00% (Price Return less 20.00%) x 5% Final 30.00% (Price Return less 30.00%) x 5% The Fixed Return for the respective Autocall s and the Final is equal to an annualized return of 10.00%, 9.54%and 9.14%, respectively. Listing and Secondary Market: The Notes will not be listed on any exchange or marketplace. Scotia Capital Inc. will use reasonable efforts under normal market conditions to provide a daily secondary market for the sale of the Notes but reserves the right to elect not to do so in the future, in its sole and absolute discretion, without prior notice to investors. Early Trading Charge: If Sold Within Early Trading Charge (% of Principal Amount) Eligibility for Investment: Selling Concession: 0-90 days of Issue 4.00% days of Issue 2.00% Thereafter RRSPs, RRIFs, RESPs, RDSPs, DPSPs and TFSAs $2.35 per Note sold (or 2.35% of the Principal Amount). In addition, a fee of up to $0.15 per Note sold (or up to 0.15% of the Principal Amount) will be payable directly by the Bank to Laurentian Bank Securities Inc. Nil

3 HYPOTHETICAL EXAMPLES Values for hypothetical calculations: Initial Unit Price: US$44.97 Barrier Price: 60% of the Initial Unit Price = 60% x US$44.97 = US$26.98 Example One Scenario: Closing Unit Price on the is greater than or equal to the Initial Unit Price and the Notes are automatically called but no Additional Return is paid because the Price Return is less than or equal to the Fixed Return. Price Return: US$47.67 (Autocall) 6.00% (actual) $ per Note In this example, an investor would receive the Amount of $ per Note, which is equivalent to a compound annual return of 10.00% on the Notes. Example Two Scenario: The Notes are not automatically called in The Closing Unit Price on the is greater than or equal to the Initial Unit Price and the Notes are automatically called and an Additional Return is paid because the Price Return is greater than the Fixed Return. US$58.12 (Autocall) Price Return: -5.05% (actual) 29.24% (actual) $ per Note In this example, an investor would receive the Amount of $ per Note, which is equivalent to a compound annual return of 9.75% on the Notes. Example Three Scenario: The Notes are not automatically called on an Autocall as the Closing Unit Price on each Autocall Valuation is less than the Initial Unit Price. The Closing Unit Price on the Final is greater than or equal to the Initial Unit Price but no Additional Return is paid because the Price Return is less than or equal to the Fixed Return. US$36.87 US$45.88 (Final Price Return: -5.05% (actual) % (actual) 2.02% (actual) $ per Note In this example, an investor would receive the Amount of $ per Note, which is equivalent to a compound annual return of 9.14% on the Notes. These examples are for illustrative purposes only and should not be construed as an estimate or forecast of the performance of the Reference Unit or the return that an investor might realize on the Notes. The Price Return will be calculated based on the price performance of the Reference Unit, which will not reflect the value of any distributions or other income or amounts accruing on the Reference Unit. All dollar amounts are rounded to the nearest whole cent.

4 HYPOTHETICAL EXAMPLES Example Four Scenario: The Notes are not automatically called as the Closing Unit Price on each is less than the Initial Unit Price, and the Price Return on the Final is less than 0.00% and the Final Unit Price is greater than the Barrier Price on the Final. US$38.67 US$40.17 (Final Price Return: -5.05% (actual) % (actual) % (actual) $ per Note In this example, an investor would receive the Amount of $ per Note, which is equivalent to a compound annual return of 0.00% on the Notes. Example Five Scenario: The Notes are not automatically called as the Closing Unit Price on each is less than the Initial Unit Price, and the Price Return on the Final is less than 0.00% and the Final Unit Price is equal to or less than the Barrier Price on the Final. US$38.67 US$22.62 (Final Price Return: -5.05% (actual) % (actual) % (actual) $50.30 per Note In this example, an investor would receive the Amount of $50.30 per Note, which is equivalent to a compound annual return of % on the Notes. These examples are for illustrative purposes only and should not be construed as an estimate or forecast of the performance of the Reference Unit or the return that an investor might realize on the Notes. The Price Return will be calculated based on the price performance of the Reference Unit, which will not reflect the value of any distributions or other income or amounts accruing on the Reference Unit. All dollar amounts are rounded to the nearest whole cent.

5 DISCLAIMER No securities regulatory authority has in any way passed upon the merits of securities referred to herein and any representation to the contrary is an offence. The Notes are not principal protected (subject to a minimum principal repayment of $1.00 per Note) and an investor may receive less than the original principal amount at maturity. A person should reach a decision to invest in the Notes only after carefully considering, with his or her investment, legal, accounting, tax and other advisors, the suitability of the Notes in light of his or her investment objectives and the information set out in the Prospectus. The Bank, the Calculation Agent, Scotia Capital Inc. and Laurentian Bank Securities Inc. make no recommendation as to the suitability of the Notes for investment by any particular person. The Notes have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the 1933 Act ), or any State securities laws and, subject to certain exceptions, may not be offered for sale, sold or delivered, directly or indirectly, in the United States, its territories or possessions or to or for the account or benefit of U.S. persons within the meaning of Regulation S under the 1933 Act. In addition, the Notes may not be offered or sold to residents of any jurisdiction or country in Europe. Scotiabank, Scotiabank Global Banking and Markets, Scotia Capital Inc. and the flying S logo are registered trademarks of The Bank of Nova Scotia. Amounts paid to holders of Notes will depend on the performance of underlying interests. Unless otherwise specified in the Prospectus, the Bank does not guarantee that any of the principal amount of Notes will be paid at maturity or that any return will be paid on Notes. Purchasers could lose all or substantially all of their investment in Notes. Notes are not appropriate investments for persons who do not understand the risks associated with structured products or derivatives. Purchasers should read carefully the Risk Factors sections in the Prospectus. The Notes will not constitute deposits under the Canada Deposit Insurance Corporation Act. The Notes have not been rated and will not be insured by the Canada Deposit Insurance Corporation or any other entity and therefore the payments to investors will be dependent upon the financial health and creditworthiness of the Bank. Scotia Capital is a wholly owned subsidiary of the Bank. Consequently, the Bank is a related and connected issuer of Scotia Capital within the meaning of applicable securities legislation. See Plan of Distribution in the Prospectus. The information contained herein, while obtained from sources believed to be reliable, is not guaranteed as to its accuracy or completeness. ETF ADVISOR The Notes are not in any way sponsored, endorsed, sold or promoted by the Reference ETF or the ETF Advisor. The ETF Advisor is not responsible for, nor has it participated in the determination of, the structuring, timing, pricing or number of Notes to be issued. Neither the Reference ETF nor the ETF Advisor has any statutory liability with respect to the accuracy or completeness of any of the information contained in this pricing supplement nor does the Reference ETF or the ETF Advisor have any obligation or liability in connection with the administration, marketing or trading of the Notes. Investing in the Notes is not equivalent to investing in the Reference Unit, the Reference ETF or the securities held by the Reference ETF. The issuance of the Notes is not a financing for the benefit of the Reference ETF, the ETF Advisor or any of their respective insiders. Neither the Reference ETF nor the ETF Advisor will receive any proceeds from the offering and sale of the Notes. Neither the Reference ETF nor the ETF Advisor participated in the preparation of this pricing supplement, takes any responsibility or assumes any liability with respect to the accuracy or completeness of any information contained herein nor makes any representation regarding the advisability of purchasing the Notes.