Published on 2/3/2016 in the Prospect News Structured Products Daily.
New Issue: TD Bank prices $1.3 million leveraged, capped, buffered notes linked to ETF basket
By Wendy Van Sickle
Columbus, Ohio, Feb. 3 – The Toronto-Dominion Bank priced $1.3 million of market linked securities with leveraged upside participation to a cap and fixed percentage buffered downside due Aug. 3, 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 $1,520 per $1,000 principal amount of notes.
Investors will receive par if the basket declines by up to 15% and will lose 1% for every 1% decline beyond the 15% buffer.
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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| 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
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| Amount: | $1,303,000
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| Maturity: | Aug. 3, 2020
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| Coupon: | 0%
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| Price: | Par of $1,000
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| Payout at maturity: | If the index return is positive, par plus 1.5 times the index return, capped at 52% return; par if the index declines by 15% or less; 1% loss for every 1% drop beyond 15%
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| Initial prices: | $193.87 for SPDR S&P 500; $102.91 for iShares Russell 2000; $55.48 for iShares MSCI EAFE; $30.58 for iShares MSCI Emerging Markets; $12.78 for PowerShares DB Commodity Index Tracking Fund; $76.97 for Vanguard REIT
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| Pricing date: | Jan. 29
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| Settlement date: | Feb. 3
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| Agents: | TD Securities (USA) LLC and Wells Fargo Securities, LLC
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| Fees: | 3.18%
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| Cusip: | 89114QUK2
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