Published on 2/16/2021 in the Prospect News Structured Products Daily.
New Issue: TD Bank prices $705,000 autocallable contingent interest buffered notes on stocks
By Wendy Van Sickle
Columbus, Ohio, Feb. 16 – Toronto-Dominion Bank priced $705,000 of autocallable contingent interest buffered notes due Aug. 7, 2023 linked to the common stocks of Newmont Corp., Alcoa Corp., Freeport-McMoRan Inc., and BHP Group Ltd., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent interest payment at the rate of 14.372% per year if each stock closes at or above the coupon barrier price, 70% 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.
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, 70% of the initial share price, in which case investors will be exposed to the laggard stock’s decline beyond the 30% buffer.
TD Securities (USA) LLC is the agent.
| Issuer: | Toronto-Dominion Bank
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| Issue: | Autocallable contingent interest buffered notes
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| Underlying stocks: | Newmont Corp., Alcoa Corp., Freeport-McMoRan Inc. and BHP Group Ltd.
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| Amount: | $705,000
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| Maturity: | Aug. 7, 2023
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| Coupon: | Each quarter, the notes pay contingent interest at a rate of 14.372% per year if all stocks close at or above barrier price 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 buffer price, in which case exposure to laggard stock’s decline beyond buffer
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| Call: | Automatically at par plus contingent interest payment if shares of each stock closes at or above its initial price on any quarterly observation date
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| Initial share prices: | $59.63 for Newmont, $19.11 for Alcoa, $28.14 for Freeport-McMoRan and $67.11 for BHP
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| Call threshold levels: | $46.977 for Newmont, $13.377 for Alcoa, $19.698 for Freeport-McMoRan and $46.977 for BHP; 70% of initial levels
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| Barrier prices: | $46.977 for Newmont, $13.377 for Alcoa, $19.698 for Freeport-McMoRan and $46.977 for BHP; 70% of initial levels
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| Pricing date: | Feb. 2
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| Settlement date: | Feb. 5
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| Agent: | TD Securities (USA) LLC
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| Fees: | 3.5%
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| Cusip: | 89114T7E9
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