Scotiabank announces transition information from USD LIBOR to Term SOFR for Subordinated Additional Tier 1 Capital Notes

TORONTO, June 28, 2023 /CNW/ - Scotiabank (TSX: BNS) (NYSE: BNS) announced today the interest rate transition for its currently outstanding 4.650% Fixed-to-Floating Rate Non-cumulative Subordinated Additional Tier 1 Capital Notes (Non-Viability Contingent Capital (NVCC)) (subordinated indebtedness), with CUSIP 064159KJ4, (the "Notes") from three-month USD LIBOR to Term SOFR (as defined herein) plus a spread adjustment of 26.161 bps for interest periods commencing on or after July 12, 2023.

On March 5, 2021, the UK Financial Conduct Authority (the FCA) announced that all USD LIBOR settings will either cease to be published or will no longer be representative after June 30, 2023 (the "Cessation Date"). The Notes contain interest rate fallback provisions that, in the event of the cessation of publication of three-month USD LIBOR, require Computershare Trust Company, N.A. ("Computershare"), the calculation agent for the Notes, to use the industry accepted successor base rate to three-month USD LIBOR in calculating the applicable interest rate on the Notes, should Computershare determine that there is such a base rate.

Computershare selected CME 3-month Term SOFR, as administered by CME Group Benchmark Administration, Ltd. (or any successor thereto) ("Term SOFR") as the replacement for three-month USD LIBOR and applied a spread adjustment of 26.161 bps, which they have determined is consistent with the replacement benchmark and tenor adjustment contemplated by the Adjustable Interest Rate (LIBOR) Act. As a result, for interest periods commencing on or after July 12, 2023, interest on the Notes will be payable at a rate of Term SOFR + 290.961 bps, as determined by Computershare in accordance with the terms of the Notes, subject to Scotiabank's right to cancel interest payments.

Instrument	CUSIP	ISIN	Current spread to three-month USD LIBOR	Spread Adjustment	Future spread to Term SOFR	Effective Date
4.650% Fixed-to-Floating Rate Non-Cumulative Subordinated Additional Tier 1 Notes	064159KJ4	US064159KJ44	264.8 bps	26.161 bps	290.961 bps	July 12, 2023

Computershare's selection of Term SOFR as the replacement for three-month USD LIBOR and the applicable spread adjustment has been separately communicated by Computershare via the Depository Trust and Clearing Corporation.

About Scotiabank

Scotiabank is a leading bank in the Americas. Guided by our purpose: "for every future", we help our customers, their families and their communities achieve success through a broad range of advice, products, and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. With a team of approximately 90,000 employees and assets of over $1.3 trillion (as at April 30, 2023), Scotiabank trades on the Toronto Stock Exchange (TSX: BNS) and New York Stock Exchange (NYSE: BNS). For more information, please visit http://www.scotiabank.com and follow us on Twitter @ScotiabankViews. 

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SOURCE Scotiabank

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