Published on 10/4/2019 in the Prospect News Structured Products Daily.
New Issue: TD Bank prices $2.23 million autocallable contingent interest barrier notes on stocks
By Sarah Lizee
Olympia, Wash., Oct. 4 – Toronto-Dominion Bank priced $2.23 million of autocallable contingent interest barrier notes with memory interest due Sept. 29, 2022 linked to the common stocks of Adobe Systems Inc., Broadcom Inc., Microsoft Corp. and Apple Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at the rate of 10.55% per year, plus any previously unpaid coupons, if each stock closes at or above the barrier price, 55% of the initial share price, on the valuation date for that month.
Starting March 24, 2020, the notes will be called at par plus the contingent coupon if the shares of each stock close at or above the initial share price on any monthly call observation date.
The payout at maturity will be par plus the contingent coupon unless the stock finishes below the 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 with memory interest
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| Underlying stocks: | Adobe Systems Inc., Broadcom Inc., Microsoft Corp. and Apple Inc.
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| Amount: | $2.23 million
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| Maturity: | Sept. 29, 2022
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| Coupon: | Each month, notes pay contingent coupon at rate of 10.55% per year, plus any previously unpaid coupons, if all shares close at or above barrier price on valuation date
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| Price: | Par
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| Payout at maturity: | Par plus contingent coupon unless any stock finishes below barrier price, in which case full exposure to laggard stock’s decline
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| Call: | Starting March 24, 2020, the notes will be called at par plus the contingent coupon if the shares of each stock close at or above the initial share price on any monthly call observation date
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| Initial share prices: | $272.47 for Adobe, $282.31 for Broadcom, $137.38 for Microsoft, $217.68 for Apple
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| Barrier prices: | $149.8585 for Adobe, $155.2705 for Broadcom, $75.5590 for Microsoft, $119.7240 for Apple, 55% of initial share prices
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| Pricing date: | Sept. 24
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| Settlement date: | Sept. 27
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| Agent: | TD Securities (USA) LLC
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| Fees: | 3.412%
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| Cusip: | 89114R2A3
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