Toronto-Dominion, Goldman wake primary; more financial deals likely; debt firms in trading

By Cristal Cody

Prospect News, Oct. 27 - The Canadian corporate primary market received a boost with the sale of two deals in the financial sector in what is expected to be the first of several more financial offerings, according to sources.

Wednesday afternoon, Toronto-Dominion Bank sold C$1 billion 10-year subordinated medium-term notes that are callable after five years. The notes priced to a good appetite, according to sources.

The Toronto-based bank sold the fixed- to floating-rate MTNs at par with an initial coupon of 3.367%, or a spread of 132 bps over the Canadian benchmark curve. The bonds came slightly tighter than initial price talk of 135 bps over the Canadian benchmark, the source said.

The bonds are structured with a fixed coupon for five years, after which the coupon converts to a floating rate.

TD Securities Inc. was the lead bookrunner.

In the secondary market, Toronto-Dominion's debt firmed in secondary trading by 2 bps to 3 bps.

Earlier in the day, Goldman Sachs Group Inc. priced C$500 million in five-year senior unsecured Maple bonds in Canada, a source said.

New York-based Goldman priced the 4.1% bonds due Nov. 3, 2015 at 99.991, or a spread of 208 bps over the Canadian benchmark curve, to yield 4.102%. The bonds priced 2 bps tighter than the price talk of 210 bps over the curve.

RBC Capital Markets Corp. was the lead bookrunner.

In secondary trading, Goldman's notes traded 2 bps to 3 bps tighter, he said.

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