By Cristal Cody
Eureka Springs, Ark., Aug. 29 – Toronto-Dominion Bank announced on Monday that it priced C$300 million of non-cumulative rate reset preferred shares with a 4.85% annual dividend for the initial period ending Oct. 31, 2021.
The bank sold 12 million shares of the series 14 non-viability contingent capital preferred stock at C$25.00 per share.
TD Securities Inc. was the lead manager.
The deal includes an over-allotment option of 2 million shares.
The dividend rate will reset every five years at 412 basis points over the then five-year Government of Canada bond yield.
On Oct. 31, 2021 and on Oct. 31 every fifth year thereafter, TD may redeem the series 14 shares at C$25.00 per share.
Subject to TD's right of redemption and certain other conditions, series 14 preferred shareholders will have the right to convert their shares into series 15 non-cumulative floating-rate NVCC preferred shares on Oct. 31, 2021 and on Oct. 31 every five years thereafter. Series 15 shareholders will be entitled to receive quarterly floating-rate dividends equal to the three-month Government of Canada Treasury bill yield plus 412 bps.
Proceeds from the offering will be used for general corporate purposes.
Toronto-Dominion Bank is a bank and financial services company based in Toronto.
| Issuer: | Toronto-Dominion Bank
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| Amount: | C$300 million, 12 million shares
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| Greenshoe: | C$50 million, 2 million shares
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| Maturity: | Oct. 31, 2021
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| Securities: | Non-cumulative rate reset preferred NVCC shares
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| Bookrunner: | TD Securities Inc.
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| Dividend: | 4.85%; resets Oct. 31, 2021 and on Oct. 31 every following fifth year at 412 bps over then five-year Government of Canada bond yield
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| Price: | C$25.00 per share
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| Call feature: | Oct. 31, 2021 and Oct. 31 every fifth year thereafter at C$25.00 per share
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| Pricing date: | Aug. 29
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| Settlement date: | Sept. 8
|
| Rating: | DBRS: Pfd-2
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| Distribution: | Canada
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