Published on 3/20/2023 in the Prospect News Structured Products Daily.
New Issue: TD Bank sells $6.35 million market-linked contingent autocalls on three indexes
By William Gullotti
Buffalo, N.Y., March 20 – Toronto-Dominion Bank priced $6.35 million of 0% market-linked autocallable securities with contingent downside due July 29, 2025 linked to the S&P 500 index, the Russell 2000 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent interest payment at the rate of 11.25% per year if each index closes at or above the coupon barrier level, 75% of the initial level, on the observation date for that period.
The notes will be automatically called at par plus the coupon if each index closes at or above initial levels on any quarterly observation date after six months.
The payout at maturity will be par plus the final coupon if each index finishes at or above its coupon barrier.
If the worst performer finishes below its coupon barrier but at or above its 65% threshold, the payout will be par. Otherwise, investors will be fully exposed to the decline of the worst performer from its initial level.
TD Securities (USA) LLC and Wells Fargo Securities are the agents.
| Issuer: | Toronto-Dominion Bank
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| Issue: | Market-linked autocallable securities with contingent coupon and contingent downside
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| Underlying indexes: | S&P 500 index, Russell 2000 index, Nasdaq-100 index
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| Amount: | $6.35 million
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| Maturity: | July 29, 2025
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| Coupon: | 11.25% annual rate, payable quarterly if all indexes close at or above their coupon barrier levels on the relevant observation date
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| Price: | Par
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| Payout at maturity: | Par plus final coupon if each index finishes at or above coupon barrier; if worst performer finishes below coupon barrier but not below threshold level, par; otherwise, full exposure to decline of worst performer from its initial level
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| Call: | Automatically at par plus coupon if each index closes at or above initial levels on any quarterly observation date after six months
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| Initial level: | 4,076.6 for S&P, 1,931.945 for Russell, 12,101.93 for Nasdaq
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| Coupon barrier: | 3,057.45 for S&P, 1,448.95875 for Russell, 9,076.4475 for Nasdaq; 75% of initial levels
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| Threshold level: | 2,649.79 for S&P, 1,255.76425 for Russell, 7,866.2545 for Nasdaq; 65% of initial levels
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| Pricing date: | Jan. 31
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| Settlement date: | Feb. 3
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| Agents: | TD Securities (USA) LLC and Wells Fargo Securities
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| Fees: | 1.825%
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| Cusip: | 89114YKN0
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