Published on 4/4/2016 in the Prospect News Structured Products Daily.
New Issue: TD sells $921,000 leveraged, capped, buffered notes tied to ETF basket
By Devika Patel
Knoxville, Tenn., April 4 – Toronto-Dominion Bank priced $921,000 of market linked securities with leveraged upside participation to a cap and fixed percentage buffered downside due Oct. 5, 2020 linked to a basket of six exchange-traded funds, according to a 424B2 filed with the Securities and Exchange Commission.
The basket components are the SPDR S&P 500 ETF Trust with a 50% weight, iShares Russell 2000 ETF with a 15% weight, iShares MSCI EAFE ETF with a 15% weight, iShares MSCI Emerging Markets ETF with a 10% weight, PowerShares DB Commodity Index Tracking Fund with a 5% weight and Vanguard REIT ETF with a 5% weight.
If the basket return is positive, the payout at maturity will be par plus 1.5 times the basket return, subject to a maximum payout of $1,450 per $1,000 principal amount of notes.
Investors will receive par if the basket declines by up to 20% and will lose 1% for every 1% decline beyond the 20% buffer.
TD Securities (USA) LLC and Wells Fargo Securities, LLC are the agents.
| Issuer: | Toronto-Dominion Bank
|
| Issue: | Market linked securities—leveraged upside participation to a cap and fixed percentage buffered downside
|
| Basket components: | SPDR S&P 500 ETF Trust, 50% weight; iShares Russell 2000 ETF, 15% weight; iShares MSCI EAFE ETF, 15% weight; iShares MSCI Emerging Markets ETF, 10% weight; PowerShares DB Commodity Index Tracking Fund, 5% weight; Vanguard REIT ETF, a 5% weight
|
| Amount: | $921,000
|
| Maturity: | Oct. 5, 2020
|
| Coupon: | 0%
|
| Price: | Par of $1,000
|
| Payout at maturity: | If the index return is positive, par plus 1.5 times the index return, capped at 45% return; par if the index declines by 20% or less; 1% loss for every 1% drop beyond 20%
|
| Initial prices: | $205.56 for SPDR S&P 500; $110.62 for iShares Russell 2000; $57.13 for iShares MSCI EAFE; $34.25 for iShares MSCI Emerging Markets; $13.29 for PowerShares DB Commodity Index Tracking Fund; $83.80 for Vanguard REIT
|
| Pricing date: | March 31
|
| Settlement date: | April 5
|
| Agent: | TD Securities (USA) LLC and Wells Fargo Securities, LLC
|
| Fees: | 1.75%
|
| Cusip: | 89114QUX4
|
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