Published on 3/14/2023 in the Prospect News Structured Products Daily.
New Issue: TD Bank prices $2 million callable memory interest barrier notes on three ETFs
By William Gullotti
Buffalo, N.Y., March 14 – Toronto-Dominion Bank priced $2 million of callable contingent interest barrier notes with memory interest due March 4, 2025 linked to the performance of the Invesco QQQ Trust, Series 1, the iShares Russell 2000 ETF and the SPDR S&P 500 ETF Trust, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at an annual rate of 11.52% if each ETF closes at or above the 70% contingent interest barrier level on the corresponding observation date. Previously unpaid coupons, if any, will be automatically included whenever a coupon is paid.
The notes will be callable at par plus any coupon due on any quarterly observation date after one year.
The payout at maturity will be par plus the final coupon unless any ETF finishes below the 70% barrier level, in which case investors will lose 1% for each 1% decline of the lesser-performing ETF from its initial level.
TD Securities (USA) LLC is the agent.
| Issuer: | Toronto-Dominion Bank
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| Issue: | Callable contingent interest barrier notes with memory interest
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| Underlying funds: | iShares Russell 2000 ETF, SPDR S&P 500 ETF Trust, Invesco QQQ Trust, Series 1
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| Amount: | $2 million
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| Maturity: | March 4, 2025
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| Coupon: | 11.52% annual rate, payable quarterly if each ETF closes at or above contingent interest barrier level on the corresponding observation date; coupon payment events will automatically include any previously unpaid coupons
|
| Price: | Par
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| Payout at maturity: | Par plus final coupon unless any ETF finishes below barrier level, in which case 1% loss for each 1% decline of least-performing ETF from initial level
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| Call option: | At par plus any coupon due on any quarterly observation date after one year
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| Initial levels: | $291.85 for QQQ, $187.51 for iShares, $396.38 for SPDR
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| Coupon barrier levels: | $204.295 for QQQ, $131.257 for iShares, $277.466 for SPDR; 70% of initial levels
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| Barrier levels: | $204.295 for QQQ, $131.257 for iShares, $277.466 for SPDR; 70% of initial levels
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| Strike date: | Feb. 24
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| Pricing date: | Feb. 27
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| Settlement date: | March 2
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| Agent: | TD Securities (USA) LLC
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| Fees: | 0.5%
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| Cusip: | 89114YS44
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