Published on 2/13/2020 in the Prospect News Structured Products Daily.
New Issue: TD Bank prices $2.03 million contingent interest barrier autocallables on credit-card stocks
By Wendy Van Sickle
Columbus, Ohio, Feb. 13 – Toronto-Dominion Bank priced $2.03 million of autocallable contingent interest barrier notes due Feb. 9, 2023 linked to the shares of MasterCard Inc., American Express Co. and Visa Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 8.5% per year if each stock closes at or above the coupon barrier price, 70% of the initial share price, on the valuation date for that quarter.
The notes will be called at par plus the contingent coupon if the shares of each stock close at or above the initial share price on any quarterly call observation date.
The payout at maturity will be par plus the contingent coupon, if any unless any stock finishes below the barrier price, 60% of the initial price, in which case investors will be fully exposed to the laggard stock’s decline.
TD Securities (USA) LLC is the underwriter.
| Issuer: | Toronto-Dominion Bank
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| Issue: | Autocallable contingent interest barrier notes
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| Underlying stocks: | MasterCard Inc., American Express Co. and Visa Inc.
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| Amount: | $2.03 million
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| Maturity: | Feb. 9, 2023
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| Coupon: | Each quarter, notes pay contingent coupon at rate of 8.5% per year if all shares close at or above coupon barrier price on valuation date
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| Price: | Par
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| Payout at maturity: | Par plus contingent coupon, if any, unless any stock finishes below barrier price, in which case full exposure to laggard stock’s decline
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| Call: | Automatically at par plus contingent coupon if shares of each stock close at or above initial share price on any quarterly call observation date
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| Initial share prices: | $327.00 for MasterCard, $131.82 for American Express, $202.74 for Visa
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| Coupon barrier prices: | $228.90 for MasterCard, $92.274 for American Express, $141.918 for Visa, 70% of initial share prices
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| Barrier prices: | $196.20 for MasterCard, $79.092 for American Express, $121.644 for Visa, 60% of initial share prices
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| Pricing date: | Feb. 7
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| Settlement date: | Feb. 12
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| Agent: | TD Securities (USA) LLC
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| Fees: | 2%
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| Cusip: | 89114RDL7
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