TD Bank to price contingent interest barrier autocallables with memory interest on Alibaba

By Emma Trincal

New York, July 28 – Toronto-Dominion Bank plans to price autocallable contingent interest barrier notes with memory interest due Aug. 17, 2022 linked to the American depositary receipts of Alibaba Group Holding Ltd., according to a 424B2 filing with the Securities and Exchange Commission.

If the ADRs close at or above the barrier price – 75% of the initial price – on any quarterly review date other than the final one, the notes will pay a contingent coupon for the corresponding quarter at an annualized rate of 16.39% plus any previously unpaid contingent coupons with respect to any previous review dates on which the stock closed below the interest barrier.

If the ADRs close at or above the initial price on a quarterly review date other than the final one, the notes will be called at par plus the contingent coupon and any previously unpaid contingent coupons.

If the notes are not called and the ADRs’ final price is at or above the 75% barrier, the payout at maturity will be par plus the contingent coupon and any previously unpaid contingent interest payments. Otherwise, investors will be exposed to the decline of the ADR price from the initial price.

The final price will be the average of the closing prices on the five trading days ending Aug. 12, 2022.

TD Securities (USA) LLC is the agent. J.P. Morgan Securities LLC and JPMorgan Chase Bank, NA are the placement agents.

The notes will price on July 30 and settle on Aug. 4.

The Cusip number is 89114TNU2.

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