TD plans leveraged performance notes on S&P Banks versus S&P 500

By Devika Patel

Knoxville, Tenn., Dec. 14 – Toronto-Dominion Bank plans to price 0% leveraged capped relative performance securities linked to the S&P Banks Select Industry index and S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes are expected to have a term of between 13 and 15 months, with the exact maturity to be set at pricing.

The S&P Banks is the long index and the S&P 500 is the short index.

If the long index return is greater than the short index return, the payout at maturity will be par of $1,000 plus two times the difference between the two returns, up to a maximum return that is expected to fall between 8.2% and 9.6%. The exact cap will be set at pricing.

If the returns are equal, the payout at maturity will be par.

If the long index return is less than the short index return, the payout will be par minus the difference between the two returns.

TD Securities (USA) LLC and Goldman, Sachs & Co. are the agents.

The notes (Cusip: 89114QUJ5) will price and settle in December.

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