By Cristal Cody
Prospect News, Oct. 27 - Toronto-Dominion Bank priced C$1 billion 10-year subordinated medium-term notes that are callable after five years, a source said Wednesday.
The Canadian bank sold the notes at par to yield 3.367%, or a spread of 132 basis points over the Canadian benchmark curve. The debt came slightly tighter than initial price talk of 135 bps plus, the source said.
The notes are structured with a fixed- to floating-rate coupon. The 3.367% coupon converts to a floating rate after five years, according to the source.
The bank said in a news release late Wednesday that it may redeem the bonds at par after Nov. 2, 2015.
TD Securities Inc. was the lead bookrunner of the deal.
The Toronto-based bank and its subsidiaries are known as the TD Bank Financial Group. The company is the sixth-largest bank in North America by number of branches.
| Issuer: | Toronto-Dominion Bank
|
| Amount: | C$1 billion
|
| Maturity: | Nov. 2, 2020
|
| Securities: | Subordinated medium-term notes
|
| Bookrunner: | TD Securities Inc. (lead)
|
| Coupon: | 3.367% initially, then converts to floating rate after five years
|
| Price: | Par
|
| Yield: | 3.367%
|
| Spread: | 132 bps over Canadian benchmark curve
|
| Call option: | After Nov. 2, 2015 at par
|
| Pricing date: | Oct. 27
|
| Settlement date: | Nov. 2
|
| Distribution: | Canada
|
| Price talk: | 135 bps over Canadian benchmark
|
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