TORONTO, ON--(Marketwired - December 12, 2013) -
NOTE TO EDITORS: NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES
Scotiabank (TSX: BNS)(NYSE: BNS) today announced that it does not intend to exercise its right to redeem the currently outstanding Non-cumulative 5-Year Rate Reset Preferred Shares Series 22 of Scotiabank (the "Preferred Shares Series 22") on January 26, 2014 and, as a result, subject to certain conditions, the holders of Preferred Shares Series 22 have the right to convert all or part of their Preferred Shares Series 22 on a one-for-one basis into Non-cumulative Floating Rate Preferred Shares Series 23 of Scotiabank (the "Preferred Shares Series 23") on January 26, 2014. Holders who do not exercise their right to convert their Preferred Shares Series 22 into Preferred Shares Series 23 on such date will retain their Preferred Shares Series 22.
The foregoing conversions are subject to the conditions that: (i) if Scotiabank determines that there would be less than one million Preferred Shares Series 22 outstanding after January 26, 2014, then all remaining Preferred Shares Series 22 will automatically be converted into Preferred Shares Series 23 on a one-for-one basis on January 26, 2014, and (ii) alternatively, if Scotiabank determines that there would be less than one million Preferred Share Series 23 outstanding after January 26, 2014, no Preferred Shares Series 22 will be converted into Preferred Shares Series 23. In either case, Scotiabank shall give a written notice to that effect to holders of Series 22 Preferred Shares no later than January 17, 2014.
The dividend rate applicable to the Preferred Shares Series 22 for the five-year period commencing on January 26, 2014 and ending on January 25, 2019, and the dividend rate applicable to the Preferred Shares Series 23 for the three-month period commencing on January 26, 2014, and ending on April 25, 2014, will be determined on December 27, 2013 and announced by way of a press release on December 30, 2013.
Beneficial owners of Preferred Shares Series 22 who wish to exercise their right of conversion should communicate as soon as possible with their broker or other nominee and ensure that they follow their instructions in order to ensure that they meet the deadline to exercise such right, which is 5:00 p.m. (Toronto time) on January 13, 2014.
Scotiabank is a leading financial services provider in over 55 countries and Canada's most international bank. Through our team of more than 83,000 employees, Scotiabank and its affiliates offer a broad range of products and services, including personal and commercial banking, wealth management, corporate and investment banking to over 21 million customers. With assets of $744 billion (as at October 31, 2013), Scotiabank trades on the Toronto (BNS) and New York Exchanges (BNS). Scotiabank distributes the Bank's media releases using Marketwired. For more information please visit www.scotiabank.com.