By Cristal Cody
Tupelo, Miss., Feb. 26 – Toronto-Dominion Bank sold C$1.25 billion of 4.859% non-viability contingent capital medium-term note subordinated debentures due March 4, 2031 at par on Friday, according to the company and a market source.
The debentures (A2/A-/A) priced at a spread of 360 basis points over the interpolated Government of Canada bond curve.
The bonds bear a fixed rate until March 4, 2026 and will reset to the three-month Bankers Acceptance rate plus 349 bps through the March 4, 2031 maturity.
TD Securities Inc. was the bookrunner.
The bonds are callable on or after March 4, 2026 at par plus accrued and unpaid interest.
The debentures qualify as Tier 2 capital of Toronto-Dominion Bank.
The Toronto-based bank and financial services company plans to use the proceeds from the offering for general corporate purposes.
| Issuer: | Toronto-Dominion Bank
|
| Amount: | C$1.25 billion
|
| Maturity: | March 4, 2031
|
| Securities: | Non-viability contingent capital medium-term note subordinated debentures
|
| Bookrunner: | TD Securities Inc.
|
| Co-lead manager: | RBC Dominion Securities Inc.
|
| Coupon: | 4.859%; resets March 4, 2026 to three-month Bankers Acceptance rate plus 349 bps
|
| Price: | Par
|
| Yield: | 4.859%
|
| Spread: | 360 bps over interpolated Government of Canada bond curve
|
| Call feature: | On or after March 4, 2026 at par plus accrued and unpaid interest
|
| Pricing date: | Feb. 26
|
| Settlement date: | March 4
|
| Ratings: | Moody’s: A2
|
| Standard & Poor’s: A-
|
| DBRS: A
|
| Distribution: | Canada
|
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