By Cristal Cody
Tupelo, Miss., July 22 – Toronto-Dominion Bank announced on Tuesday that it sold an upsized C$500 million of non-cumulative five-year rate reset preferred shares with a 3.8% annual dividend for the initial period ending July 31, 2019.
TD Bank sold 20 million shares of the series 3 preferred stock at C$25.00 per share.
The deal was upsized from C$300 million, or 12 million shares.
TD Securities Inc. was the lead manager.
The dividend rate will reset every five years at the then five-year Government of Canada bond yield plus 227 basis points.
TD Bank may redeem the preferred stock in whole or in part at C$25.00 per share on July 31, 2019 and on July 31 of every fifth year thereafter.
Subject to TD Bank’s redemption, series 3 holders have the right to convert their shares into series 4 non-cumulative floating-rate preferred shares on July 31, 2019 and on every July 31 of every subsequent fifth year. Series 4 shareholders will be entitled to receive floating-rate dividends equal to the three-month Government of Canada treasury bill yield plus 227 bps.
The Toronto-based bank and financial services company plans to use the proceeds for general corporate purposes.
| Issuer: | Toronto-Dominion Bank
|
| Amount: | C$500 million, 20 million shares
|
| Maturity: | July 31, 2019
|
| Securities: | Non-cumulative five-year rate reset preferred shares
|
| Bookrunner: | TD Securities Inc.
|
| Dividend: | 3.8%; resets on July 31, 2019 and every five years at then five-year Government of Canada bond yield plus 227 bps
|
| Price: | C$25.00 per share
|
| Call feature: | July 31, 2019 and on July 31 of every fifth year thereafter at C$25.00 per share
|
| Pricing date: | July 22
|
| Settlement date: | July 31
|
| Ratings: | Moody’s: A3
|
| Standard & Poor’s: P-1
|
| DBRS: Pfd-2
|
| Distribution: | Canada
|
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