Published on 1/2/2024 in the Prospect News Structured Products Daily.
New Issue: TD Bank sells $2.09 million callable contingent interest barrier notes on indexes, ETF
By Wendy Van Sickle
Columbus, Ohio, Jan. 2 – Toronto-Dominion Bank priced $2.09 million of callable contingent interest barrier notes due Dec. 28, 2026 linked to the least performing of the Utilities Select Sector SPDR fund, the Nasdaq-100 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 8.7% if each underlier closes at or above the 70% coupon barrier level on the relevant observation date.
The notes will be callable At par on any quarterly call observation date after six months.
The payout at maturity will be par plus the final coupon if each underlier finishes at or above its coupon barrier level.
If the worst performer finishes below its coupon barrier but not below the 50% barrier level, the payout at maturity will be par. Otherwise, investors will lose 1% for each 1% decline of the worst performer from its initial level.
TD Securities (USA) LLC is the agent.
Issuer: | Toronto-Dominion Bank
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Issue: | Callable contingent interest barrier notes
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Underlying assets: | Utilities Select Sector SPDR fund, Nasdaq-100 index, Russell 2000 index
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Amount: | $2,091,000
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Maturity: | Dec. 28, 2026
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Coupon: | 8.7% annual rate, payable monthly if each underlier closes at or above contingent interest barrier level on the corresponding observation date
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Price: | Par
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Payout at maturity: | Par plus final coupon if all underliers finish at or above coupon barrier; if worst performer finishes below its coupon barrier but at or above final barrier, par; otherwise, 1% loss for each 1% decline of worst performer from initial level
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Call option: | At par on any quarterly call observation date after six months
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Initial levels: | $62.62 for Utilities Select, 16,777.4 for Nasdaq, 2,033.962 for Russell
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Coupon barrier levels: | $43.834 for Utilities Select, 11,744.18 for Nasdaq, 1,423.7734 for Russell; 70% of initial levels
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Barrier levels: | $31.31 for Utilities Select, 8,388.7 for Nasdaq, 1,016.981 for Russell; 50% of initial levels
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Pricing date: | Dec. 22
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Settlement date: | Dec. 28
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Agent: | TD Securities (USA) LLC
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Fees: | 0.75%
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Cusip: | 89115FLD1
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