By Cristal Cody
Tupelo, Miss., April 15 – Toronto-Dominion Bank announced on Wednesday that it sold C$200 million of five-year non-cumulative rate reset preferred shares with a 3.7% annual dividend for the initial period ending Oct. 31, 2020.
The bank sold 8 million shares of the series 9 preferred stock at C$25.00 per share.
TD Securities Inc. was the lead manager.
The deal includes a C$50 million over-allotment option.
The dividend rate will reset every five years at 287 basis points over the then five-year Government of Canada bond yield.
TD Bank may redeem the preferred stock in whole or in part at C$25.00 per share on Oct. 31, 2020 and on Oct. 31 every five years thereafter.
Subject to TD Bank’s redemption, series 9 preferred shareholders may convert their shares into series 10 non-cumulative floating-rate preferred shares on Oct. 31, 2020 and on every Oct. 31 of every following fifth year. Series 10 preferred shareholders will be entitled to receive floating-rate dividends equal to the three-month Government of Canada treasury bill yield plus 287 bps.
The Toronto-based bank and financial services company plans to use the proceeds for general corporate purposes.
| Issuer: | Toronto-Dominion Bank
|
| Amount: | C$200 million, 8 million shares
|
| Greenshoe: | C$50 million, 2 million shares
|
| Maturity: | Oct. 31, 2020
|
| Securities: | Non-cumulative rate reset preferred shares
|
| Bookrunner: | TD Securities Inc.
|
| Dividend: | 3.7%; resets Oct. 31, 2020 and every five years at then five-year Government of Canada bond yield plus 287 bps
|
| Price: | C$25.00 per share
|
| Call feature: | Oct. 31, 2020 and Oct. 31 every five years
|
| Pricing date: | April 15
|
| Settlement date: | April 24
|
| Ratings: | Moody’s: A3
|
| Standard & Poor’s: P-2
|
| DBRS: Pfd-2
|
| Distribution: | Canada
|
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