Published on 1/20/2020 in the Prospect News Structured Products Daily.
New Issue: TD Bank prices $2.04 million contingent interest barrier autocallables on bank stocks
By Kiku Steinfeld
Chicago, Jan. 20 – Toronto-Dominion Bank priced $2.04 million of autocallable contingent interest barrier notes due Jan. 19, 2023 linked to the common stocks of Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co. and Wells Fargo & Co., according to a 424B2 filing with the Securities and Exchange Commission.
Each six months, 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, 65% of the initial share price, on the valuation date for that period.
The notes will be called at par plus the contingent coupon if each stock closes at or above its call threshold level, 90% of its initial share price, on any semiannual call observation date.
The payout at maturity will be par plus any final contingent coupon due unless any stock finishes below its 60% barrier 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: | Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co. and Wells Fargo & Co.
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| Amount: | $2,035,000
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| Maturity: | Jan. 19, 2023
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| Coupon: | Each six months, notes pay contingent coupon at rate of 8.5% per year if all shares close at or above coupon barrier price on valuation date
|
| Price: | Par
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| Payout at maturity: | Par plus any final contingent coupon due unless any stock finishes below barrier price, in which case full exposure to laggard stock’s decline
|
| Call: | Automatically at par plus coupon if each stock closes at or above its call threshold level on any semiannual call observation date
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| Initial share prices: | $34.67 for BofA, $81.24 for Citi, $48.32 for Wells Fargo, $136.72 for JPMorgan
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| Call threshold levels: | $31.203 for BofA, $73.116 for Citi, $37.02 for Wells Fargo, $123.048 for JPMorgan, 90% of initial share prices
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| Coupon barrier prices: | $22.5355 for BofA, $52.806 for Citi, $31.408 for Wells Fargo, $88.868 for JPMorgan, 65% of initial share prices
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| Barrier prices: | $20.802 for BofA, $48.744 for Citi, $28.992 for Wells Fargo, $82.032 for JPMorgan, 60% of initial share prices
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| Pricing date: | Jan. 15
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| Settlement date: | Jan. 21
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| Underwriter: | TD Securities (USA) LLC
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| Fees: | 2.19%
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| Cusip: | 89114RC79
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