Toronto-Dominion to price leveraged buffered notes linked to six ETFs

By Angela McDaniels

Tacoma, Wash., March 3 – Toronto-Dominion Bank plans to price 0% market-linked securities with leveraged upside participation to a cap and fixed percentage buffered downside due Oct. 5, 2020 linked to a basket of exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.

The basket includes the SPDR S&P 500 ETF Trust with a 50% weight, the iShares Russell 2000 exchange-traded fund with a 15% weight, the iShares MSCI EAFE exchange-traded fund with a 15% weight, the iShares MSCI Emerging Markets exchange-traded fund with a 10% weight, the PowerShares DB Commodity Index Tracking fund with a 5% weight and the Vanguard REIT exchange-traded fund with a 5% weight.

If the basket return is positive, the payout at maturity will be par plus 150% of the basket return, subject to a maximum return that is expected to be 45% to 50% and will be set at pricing. If the basket declines by 20% or less, the payout will be par. If the basket declines by more than 20%, investors will lose 1% for every 1% that it declines beyond 20%.

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

The notes will price March 31.

The Cusip number is 89114QUX4.

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