TD Bank eyes contingent interest barrier autocalls with memory coupon on Ericsson

By Sarah Lizee

Olympia, Wash., Feb. 13 – Toronto-Dominion Bank plans to price autocallable contingent interest barrier notes with memory interest due March 3, 2021 linked to the American Depositary Receipts of Telefonaktiebolaget LM Ericsson, according to a 424B2 filing with the Securities and Exchange Commission.

If the stock closes at or above the barrier level – 72.4% of its initial level – on any quarterly review date other than the final one, the notes will pay a contingent coupon for that quarter at the annual rate of 10% and any previously unpaid contingent interest payments with respect to any previous review days on which the stock closed below the interest barrier.

If the stock closes at or above the initial level on a quarterly review date other than the final one, the notes will be called at par plus the contingent coupon and any previously unpaid contingent interest payments with respect to any previous review days on which the stock closed below the interest barrier.

If the notes are not called and the stock finishes at or above the 72.4% barrier level, the payout at maturity will be par plus the contingent coupon and any previously unpaid contingent interest payments.

Otherwise, investors will be exposed to the stock’s decline from the initial level.

TD Securities (USA) LLC is the agent. J.P. Morgan Securities LLC and JPMorgan Chase Bank, NA are the placement agents.

The notes will price on Feb. 14.

The Cusip number is 89114RDV5.

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