TD Bank plans leveraged capped buffered notes linked to ETF basket

By Wendy Van Sickle

Columbus, Ohio, Dec. 14 – Toronto-Dominion Bank plans to price 0% leveraged capped buffered notes due Jan. 4, 2022 linked a basket of six exchange-traded funds, according to a 424B2 filing 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 $1,460 to $1,510 per $1,000 principal amount of notes. The exact cap will be set at pricing.

Investors will receive par if the basket declines by up to 15% and will be exposed to losses beyond the 15% buffer.

TD Securities (USA) LLC and Wells Fargo Securities LLC are the agents.

The notes will price on Dec. 29 and settle on Jan. 4.

The Cusip number is 89114QYC6.

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