This issue is a 3.85%+100 FixedReset announced March 25.
BNS has announced:
that as a result of investor demand for its domestic public offering of non-cumulative 5-year rate reset preferred shares Series 30 (the “Preferred Shares Series 30″), the size of the offering has been increased to 10.6 million Preferred Shares Series 30. The gross proceeds of the offering will now be $265 million.
The offering was made through a syndicate of investment dealers led by Scotia Capital Inc. The Preferred Shares Series 30 commence trading on the Toronto Stock Exchange today under the symbol BNS.PR.Y.
Holders of Preferred Shares Series 30 will be entitled to receive a non-cumulative quarterly fixed dividend for the initial period ending April 25, 2015 yielding 3.85% per annum, as and when declared by the Board of Directors of Scotiabank. Thereafter, the dividend rate will reset every five years at a rate equal to 1.00% over the 5-year Government of Canada bond yield. Holders of Preferred Shares Series 30 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 31 (the “Preferred Shares Series 31″) of Scotiabank on April 26, 2015 and on April 26 every five years thereafter. Holders of the Preferred Shares Series 31 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 1.00%, as and when declared by the Board of Directors of Scotiabank.
BNS.PR.Y traded 461,960 shares in a range of 24.30-64 (!) today, before settling at 24.42-49.
Vital statistics are:
Maturity Type : Limit Maturity
Maturity Date : 2040-04-12
Maturity Price : 24.37
Evaluated at bid price : 24.42
Bid-YTW : 3.94 %
BNS.PR.Y is tracked by HIMIPref™. It is assigned to the “FixedReset” index; when there is enough differentiation of prices to justify a new index, the FixedReset index will be split into discount and premium indices; just by price, I think: doing it by reset level and call expectation might be too complex for what is meant to be a simple index.