Published on 6/2/2022 in the Prospect News Canadian Bonds Daily and Prospect News Investment Grade Daily.
New Issue: TD Bank prices $5.5 billion of three-, five- and 10-year notes
Chicago, June 2 – Toronto-Dominion Bank priced $5.5 billion of notes (A1/A) in four parts on Wednesday, according to multiple FWP filing with the Securities and Exchange Commission.
The bank priced $2 billion of notes over a fixed-rate tranche and a floating-rate tranche, both with the same three-year tenor.
The smallest part of the deal is the $350 million floating-rate part of that set, priced at par. The coupon will be based on SOFR plus 102 basis points. The notes are non-callable.
The fixed-part of the three-year pair is $1.65 billion of 3.766% notes priced at par for a spread of 95 bps over Treasuries. The notes may be optionally redeemed early with a Treasuries plus 15 bps make-whole premium.
The middle tranche priced out as $1.5 billion of 4.108% five-year notes with no discount for a spread of 120 bps over Treasuries. Any optional early redemption would be at Treasuries plus 20 bps.
The longest dated part of the megadeal is the largest. The bank priced $2 billion of 4.456% 10-year notes at par with a spread of 155 bps over Treasuries. The notes are redeemable with a Treasuries plus 25 bps make-whole premium all the way to the maturity date.
Joint bookrunners are TD Securities (USA) LLC, BofA Securities, Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC.
The banking and financial services company is based in Toronto.
| Issuer: | Toronto-Dominion Bank
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| Amount: | $5.5 billion
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| Issue: | Senior notes
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| Bookrunners: | TD Securities (USA) LLC, BofA Securities, Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC
|
| Co-managers: | Academy Securities, Inc., Blaylock Van, LLC, Great Pacific Securities, Roberts & Ryan Investments, Inc., Tigress Financial Partners LLC, ANZ Securities, Inc., CIBC World Markets Corp., Commonwealth Bank of Australia, DBS Bank Ltd., Desjardins Securities Inc., Mizuho Securities USA LLC, MUFG, National Bank of Canada Financial Inc., Scotia Capital (USA) Inc. and SMBC Nikko Securities America, Inc.
|
| Counsel to issuer: | McCarthy Tetrault LLP (Canada) and Simpson Thacher & Bartlett LLP (New York)
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| Counsel to underwriters: | Davis Polk & Wardwell LLP
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| Trade date: | June 1
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| Settlement date: | June 8
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| Ratings: | Moody’s: A1
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| S&P: A
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| Distribution: | SEC registered
|
|
|
| Floaters
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| Amount: | $350 million
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| Issue: | Floating-rate senior medium-term notes
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| Maturity: | June 6, 2025
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| Coupon: | SOFR plus 102 bps
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| Price: | Par
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| Yield: | SOFR plus 102 bps
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| Call features: | Non-callable
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| Cusip: | 89115A2B7
|
|
|
| Three-year fixed
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| Amount: | $1.65 billion
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| Issue: | Senior notes
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| Maturity: | June 6, 2025
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| Coupon: | 3.766%
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| Price: | Par
|
| Yield: | 3.766%
|
| Spread: | Treasuries plus 95 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps
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| Cusip: | 89115A2A9
|
|
|
| Five-year notes
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| Amount: | $1.5 billion
|
| Issue: | Senior notes
|
| Maturity: | June 8, 2027
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| Coupon: | 4.108%
|
| Price: | Par
|
| Yield: | 4.108%
|
| Spread: | Treasuries plus 120 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps
|
| Cusip: | 89115A2C5
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|
|
| 10-year notes
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| Amount: | $2 billion
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| Issue: | Senior notes
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| Maturity: | June 8, 2032
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| Coupon: | 4.456%
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| Price: | Par
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| Yield: | 4.456%
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| Spread: | Treasuries plus 155 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps
|
| Cusip: | 89115A2E1
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