Product Description
The NBC Canadian Utility Companies Deposit Notes, Series 1 are issued by National Bank of Canada. The Principal Amount of your Deposit is fully guaranteed at maturity by the Bank. The Deposits aim to provide you with a return at maturity linked to the performance of a portfolio of the common shares of five Canadian pipeline companies.
Note
On October 1, 2024, TC Energy Corporation (TSX, NYSE: TRP) (“TC Energy”), separated its Liquids Pipelines business to form South Bow Corporation (TSX, NYSE: SOBO) (“South Bow”), resulting into two independent publicly traded companies. This event triggered a Potential Adjustment Event in accordance with the terms and conditions of the Deposits Notes. To reflect the impact of such transaction, the Calculation Agent made adjustments to the Reference Portfolio by splitting the weight of the common shares of TC Energy. In particular, the weight of TC Energy in the Reference Portfolio was rebalanced and SOBO was added to the Reference Portfolio. As such, the Closing Level on the Issuance Date of the common shares of TC Energy and SOBO was adjusted as of the closing of the markets on October 1, 2024.
On October 28, 2021, Brookfield Infrastructure Partners L.P. announced the completion of its acquisition of Inter Pipeline Ltd. (TSX: IPL) (Inter Pipeline). It is anticipated that the Inter Pipeline shares will be delisted from the Toronto Stock Exchange. This event triggered an Extraordinary Non Replacement Event in connection with the Reference Portfolio of the Note Securities as per the terms and conditions of the Prospectus. As such, we hereby advise the Holders of the Note Securities that the common shares of Inter Pipeline have been deleted from the Reference Portfolio such that, from the closing of the markets on October 28, 2021, the Reference Portfolio Return will be calculated on the basis of the remaining Reference Shares, where the weighting of Inter Pipeline’s common shares will be reallocated proportionally to the market capitalization of the remaining Reference Shares, in accordance with the terms and conditions of the Prospectus.