TD Bank to price notes linked to Raymond James sustainability stocks

By Angela McDaniels

Tacoma, Wash., April 12 – Toronto-Dominion Bank plans to price notes due May 12, 2017 linked to a basket of 14 sustainability-related common equity securities selected in March by Raymond James & Associates, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The underlying companies, chosen for supporting long-term ecological balance through the reduction or elimination of harmful impacts to the environment or depletion of natural resources, are Casella Waste Systems, Inc., CatchMark Timber Trust, Inc., Covanta Holding Corp., Fleetmatics Group plc, Kansas City Southern, Mercer International, Inc., Pattern Energy Group Inc., Potlatch Corp., Republic Services, Inc., Silver Spring Networks, Inc., SunPower Corp., Union Pacific Corp., Waste Connections, Inc. and Weyerhaeuser Co.

Each reference share is anticipated to have a basket weighting of between 5% to 10%, provided that up to four reference shares may have a basket weighting of between 0.5% and 5%. The actual weightings will be set on the pricing date.

Each quarter, investors will receive a distribution equal to the sum for each reference share of an amount in dollars equal to (x) 100% of the per share gross cash dividends declared by the reference share issuer to holders of record for which the ex-dividend date occurred during the relevant dividend period multiplied by (y) that reference share’s dividend reference amount. The distribution may be zero.

The dividend reference amount equals (w) $1,000 multiplied by (x) 97% divided by (y) the adjusted initial share price multiplied by (z) the reference share weighting. This amount is subject to further reduction. With respect to any dividend for which the ex-dividend date occurred on the third valuation date, only one-third of the applicable dividend will be included, and with respect to any dividend for which the ex-dividend date occurred on the second valuation date, only two-thirds of the applicable dividend will be included.

For each $1,000 principal amount of notes, the payout at maturity will be $1,000 multiplied by 97% multiplied by the basket level percentage, subject to a minimum payment of $1.00 per note. Because of the 97% participation rate, investors will receive less than par if the basket level percentage is less than 103.09%.

For each stock, its initial share price is the average of its closing share prices on April 22, April 25 an April 26 plus $0.01.

For each stock, its final share price will be the average of its closing share prices on May 5, 2017, May 8, 2017 and May 9, 2017 minus $0.01.

TD Securities (USA) LLC is the agent.

The notes will price April 22.

The Cusip is 89114QVC9.

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