Published on 12/26/2020 in the Prospect News Structured Products Daily.
New Issue: TD Bank sells $2.03 million autocallable contingent interest barrier notes on bank stocks
By Taylor Fox
New York, Dec. 30 – Toronto-Dominion Bank priced $2.03 million of autocallable contingent interest barrier notes due Dec. 7, 2023 linked to the common stocks of Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a semiannual contingent interest payment at the annual rate of 8% if the stocks close at or above the coupon barrier price, 60% of the initial share price, on the observation date for that period.
The notes will be called at par plus the contingent interest payment if the shares close at or above 90% of their initial prices on any semiannual observation date.
If the notes are not called, the payout at maturity will be par plus any contingent interest payment due unless any of the stocks finish below the barrier price, 55% of the initial share price, in which case investors will be fully exposed to the decline of the worst performer.
TD Securities (USA) LLC is the agent.
| Issuer: | Toronto-Dominion Bank
|
| Issue: | Autocallable contingent interest barrier notes
|
| Underlying stocks: | Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co.
|
| Amount: | $2,025,000
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| Maturity: | Dec. 7, 2023
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| Coupon: | 8% annual rate, payable semiannually if each underlier finishes above coupon barrier level on related observation date
|
| Price: | Par
|
| Payout at maturity: | Par plus any contingent interest payment due unless any stock finishes below barrier price, in which case full exposure to the stock’s decline
|
| Call: | Automatically at par plus contingent interest payment if shares of all stocks close at or above 90% of initial price on any semiannual observation date
|
| Initial share prices: | $29.29 for Bank of America, $58.62 for Citigroup and $122.34 for JPMorgan
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| Barrier levels: | $16.1095 for Bank of America, $32.241 for Citigroup and $67.287 for JPMorgan, 55% of initial levels
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| Coupon barrier levels: | $17.574 for Bank of America, $5.172 for Citigroup and $73.404 for JPMorgan, 60% of initial levels
|
| Pricing date: | Dec. 4
|
| Settlement date: | Dec. 9
|
| Agent: | TD Securities (USA) LLC
|
| Fees: | 1.48%
|
| Cusip: | 89114RZR0
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