BNS Offers New Autocallable Securities Tied to S&P 500 Performance

Rhea-AI Filing Summary

Bank of Nova Scotia has filed a prospectus for Autocallable Strategic Accelerated Redemption Securities linked to the S&P 500 Index. Key features include:

• Principal amount of $10.00 per unit with approximately six-year term if not called earlier
• Automatic call feature triggers if the S&P 500 Index reaches or exceeds 100% of starting value on observation dates
• Potential call amounts range from $10.65-$10.75 (first year) to $13.90-$14.50 (final year)
• If not called, investors face 1-to-1 downside exposure with up to 100% principal at risk

Key risks include credit risk of Bank of Nova Scotia, potential loss of principal, limited upside potential capped at call premiums, and no interim interest payments. The initial estimated value will be less than the public offering price, and secondary market prices may be lower than both.

Positive

• Potential for attractive returns with call premiums ranging from 6.5-7.5% in year 1 up to 39-45% in year 6
• Automatic call feature provides multiple opportunities for early exit with predetermined returns if S&P 500 performs well

Negative

• Full downside risk exposure with potential 100% principal loss if the S&P 500 declines and notes are not called
• Returns are capped at predetermined call premiums even if the S&P 500 significantly outperforms
• No interim interest payments or dividends, reducing potential income for investors
• Notes are not exchange-listed, which may significantly limit liquidity for investors

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Accepted by SEC EDGAR 06/27/2025 - 01:19 PM Learn about SEC filing dates

FAQ

What are the key features of BNS's Autocallable Strategic Accelerated Redemption Securities linked to S&P 500?

The securities have a $10.00 principal amount per unit with a six-year term. They feature automatic call provisions if the S&P 500 index reaches or exceeds the Call Level (100% of Starting Value) on observation dates. Call amounts range from $10.65-$10.75 in year 1 to $13.90-$14.50 in year 6. If not called, investors face 1-to-1 downside exposure with up to 100% principal at risk.

What are the potential returns and call amounts for BNS's Autocallable Securities (2025)?

The securities offer tiered call amounts: $10.65-$10.75 if called in year 1, $11.30-$11.50 in year 2, $11.95-$12.25 in year 3, $12.60-$13.00 in year 4, $13.25-$13.75 in year 5, and $13.90-$14.50 if called in year 6. Returns are capped at these call premiums, with no interim interest payments.

What are the main risks of investing in BNS's 2025 Autocallable Securities?

Key risks include: 1) Potential loss of principal if notes are not automatically called, 2) Credit risk of BNS - if BNS becomes insolvent, investors may lose entire investment, 3) Initial estimated value will be less than public offering price, 4) Limited returns capped at call premiums, and 5) No rights to underlying securities or dividends of the S&P 500 index.

What is the automatic call feature of BNS's S&P 500-linked Securities?

The securities will be automatically called if the Observation Level (closing level) of the S&P 500 index on any Observation Date equals or exceeds the Call Level (100% of Starting Value). Observation dates occur approximately every year for six years from the pricing date. If called, investors receive the predetermined call amount for that period.

Who is the target investor for BNS's 2025 Autocallable Securities?

These securities are designed for investors who 1) expect the S&P 500 index to reach or exceed the Call Level on at least one Observation Date, 2) are willing to have their notes called early, 3) accept that returns are capped at the Call Premium, 4) are willing to take full downside risk, and 5) are comfortable foregoing interim interest payments.

Filed Pursuant to Rule 433
Registration Statement No. 333-282565

AUTOCALLABLE STRATEGIC ACCELERATED REDEMPTION SECURITIES®

 

Autocallable Strategic Accelerated Redemption Securities® Linked to the S&P 500® Index
Issuer	The Bank of Nova Scotia (“BNS”)
Principal Amount	$10.00 per unit
Term	Approximately six years, if not called earlier
Market Measure	The S&P 500® Index (Bloomberg symbol: “SPX”)
Automatic Call	The notes will be called automatically if the Observation Level of the Market Measure on any of the Observation Dates is equal to or greater than the Call Level
Observation Level	The closing level of the Market Measure on any Observation Date
Observation Dates	Approximately one, two, three, four, five and six years from the pricing date
Call Level	100.00% of the Starting Value
Call Amounts	[$10.65 to $10.75] if called on the first Observation Date, [$11.30 to $11.50] if called on the second Observation Date, [$11.95 to $12.25] if called on the third Observation Date, [$12.60 to $13.00] if called on the fourth Observation Date, [$13.25 to $13.75] if called on the fifth Observation Date and [$13.90 to $14.50] if called on the final Observation Date, each to be determined on the pricing date
Payout Profile at Maturity	If the notes are not called, 1-to-1 downside exposure to decreases in the Market Measure, with up to 100.00% of your principal amount at risk
Threshold Value	100.00% of the Starting Value
Investment Considerations	This investment is designed for investors who anticipate that the Observation Level of the Market Measure on at least one of the Observation Dates will be equal to or greater than the Call Level and, in that case, are willing to have their notes called. This investment is also designed for investors who are willing to accept that their return on their investment will be capped at the applicable Call Premium, take full downside risk and forgo interim interest payments.
Preliminary Offering Documents	http://www.sec.gov/Archives/edgar/data/9631/000183988225035185/bns_fwp-18769.htm
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. Risk Factors Please see the Preliminary Offering Documents for a description of certain risks related to this investment, including, but not limited to, the following: ●If your notes are not automatically called, your investment will 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. ●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. ●If called, your return on the notes is limited to the applicable Call Premium. ●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. Final terms will be set on the pricing date within the given range for the specified Market-Linked Investment. Please see the Preliminary Offering Documents for complete product disclosure, including related risks and tax disclosure.

 

The Bank of Nova Scotia (“BNS”) has filed a registration statement (which includes a prospectus) with the U.S. Securities and Exchange Commission (SEC) for the notes that are described in this Guidebook. Before you invest, you should carefully read the prospectus in that registration statement and other documents that BNS has filed with the SEC for more complete information about BNS and any offering described in this Guidebook. You may obtain these documents without cost by visiting EDGAR on the SEC Website at www.sec.gov. BNS’s Central Index Key, or CIK, on the SEC website is 9631. Alternatively, Merrill Lynch will arrange to send you the prospectus and other documents relating to any offering described in this document if you so request by calling toll-free 1-800-294-1322. BNS faces risks that are specific to its business, and we encourage you to carefully consider these risks before making an investment in its securities.