Published on 12/24/2020 in the Prospect News Structured Products Daily.
New Issue: TD Bank prices $1 million autocallable contingent interest barrier notes on stocks
By Taylor Fox
New York, Dec. 24 – Toronto-Dominion Bank priced $1 million of autocallable contingent interest barrier notes due Dec. 13, 2023 linked to the common stocks of CVS Health Corp., FedEx Corp., United Parcel Service, Inc. and Walgreens Boots Alliance, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Quarterly, the notes will pay a contingent interest payment at the rate of 13.2% per year if each stock closes at or above the coupon barrier price, 55% 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 of each stock close at or above their initial prices on any quarterly observation date after six months.
If the notes are not called, the payout at maturity will be par plus any contingent interest payment due unless the least performing stock finishes below the barrier price, 55% of the initial share price, in which case investors will be fully exposed to the laggard stock’s decline.
TD Securities (USA) LLC is the agent.
| Issuer: | Toronto-Dominion Bank
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| Issue: | Autocallable contingent interest barrier notes
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| Underlying stocks: | CVS Health Corp., FedEx Corp., United Parcel Service, Inc. and Walgreens Boots Alliance, Inc.
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| Amount: | $1 million
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| Maturity: | Dec. 13, 2023
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| Coupon: | Quarterly, the notes pay a contingent coupon at rate of 13.2% per year if all stocks close at or above their barrier prices on the relevant observation date
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| Price: | Par
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| Payout at maturity: | Par plus any contingent interest payment due unless any stock finishes below barrier price, in which case full exposure to laggard stock’s decline
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| Call: | Automatically at par plus contingent interest payment if shares of each stock close at or above its initial price on any quarterly observation date after one year
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| Initial share prices: | $73.86 for CVS, $301.45 for FedEx, $166.39 for United Parcel and $41.99 for Walgreens
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| Coupon barrier prices: | $40.623 for CVS, $165.7975 for FedEx, $91.5145 for United Parcel and $23.0945 for Walgreens; 55% of initial levels
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| Final barrier prices: | $40.623 for CVS, $165.7975 for FedEx, $91.5145 for United Parcel and $23.0945 for Walgreens; 55% of initial levels
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| Pricing date: | Dec. 8
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| Settlement date: | Dec. 11
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| Agent: | TD Securities (USA) LLC
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| Fees: | 1%
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| Cusip: | 89114T2B7
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