Published on 1/7/2016 in the Prospect News Structured Products Daily.
New Issue: TD Bank prices $2.9 million 4.5-year market-linked notes tied to funds
By Susanna Moon
Chicago, Jan. 7 – Toronto-Dominion Bank priced $2.9 million of 0% market-linked securities – leveraged upside participation to a cap and fixed percentage buffered downside due July 6, 2020 linked to a basket of six exchange-traded funds, according to a 424B5 filed with the Securities and Exchange Commission.
The basket consists of the SPDR S&P 500 ETF Trust with a 50% weight, the iShares Russell 2000 ETF with a 15% weight, the iShares MSCI EAFE ETF with a 15% weight, the iShares MSCI Emerging Markets ETF with a 10% weight, the PowerShares DB Commodity Index Tracking Fund with a 5% weight and the Vanguard REIT ETF with a 5% weight.
The payout at maturity will be par plus 1.5 times any basket gain, up to a maximum payment of $1,505 per $1,000 principal amount.
Investors will receive par if the basket falls by up to 15% and will be exposed to any losses beyond 15%.
TD Securities (USA) LLC and Wells Fargo Securities, LLC are the agents.
| Issuer: | Toronto-Dominion Bank
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| Issue: | Market-linked securities – leveraged upside participation to a cap and fixed percentage buffered downside
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| Underlying basket: | SPDR S&P 500 ETF Trust (50% weight), the iShares Russell 2000 ETF (15% weight), the iShares MSCI EAFE ETF (15% weight), the iShares MSCI Emerging Markets ETF (10% weight), the PowerShares DB Commodity Index Tracking Fund (5% weight) and the Vanguard REIT ETF (5% weight)
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| Amount: | $2,902,000
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| Maturity: | July 6, 2020
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par plus 1.5 times any basket gain, capped at 50.5%; par if basket falls by up to 15%; exposure to any losses beyond 15%
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| Initial levels: | $205.93 for SPDR S&P, $114.07 for iShares Russell, $59.52 for iShares MSCI EAFE, $32.29 for iShares MSCI EM, $13.29 for PowerShares DB Commodity and $80.43 for Vanguard REIT fund
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| Buffer levels: | 85% of initial level
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| Pricing date: | Dec. 30
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| Settlement date: | Jan. 5
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| Agents: | TD Securities (USA) LLC and Wells Fargo Securities, LLC
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| Fees: | 3.375%
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| Cusip: | 89114QUE6
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