TD Bank plans leveraged capped buffered notes linked to ETF basket

By Wendy Van Sickle

Columbus, Ohio, Aug. 8 – Toronto-Dominion Bank plans to price 0% leveraged capped buffered notes due Sept. 8, 2020 linked a basket of three 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 60% weight, iShares Russell 2000 ETF with a 20% weight and the SPDR S&P Midcap 400 ETF with a 20% 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 $1,400 to $1,450 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 10% and will be exposed to losses beyond the 10% buffer.

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

The notes will price on Aug. 31 and settle on Sept. 6.

The Cusip number is 89114QXE3.

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