Published on 1/3/2020 in the Prospect News Structured Products Daily.
New Issue: TD Bank prices $500,000 contingent interest barrier autocallables on Brazilian ADRs
By Marisa Wong
Los Angeles, Jan. 3 – Toronto-Dominion Bank priced $500,000 of autocallable contingent interest barrier notes due Jan. 5, 2023 linked to the least performing of the American depositary receipts of Banco Bradesco SA, Itau Unibanco Holdings SA, Petroleo Brasileiro SA and Vale SA, according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent semiannual coupon at an annual rate of 15.1% if each stock closes at or above its contingent interest barrier value, 70% of its initial share price, on the related semiannual observation date.
The notes will be called at par if each stock closes at or above the call threshold, 85% of the initial price, on any semiannual observation date after one year.
The payout at maturity will be par unless any stock finishes below its barrier value, 50% of its initial price, in which case investors will be fully exposed to the decline of the least-performing stock.
TD Securities (USA) LLC is the underwriter.
| Issuer: | Toronto-Dominion Bank
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| Issue: | Autocallable contingent interest barrier notes
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| Underlying ADRs: | Banco Bradesco SA (Symbol: BBD), Itau Unibanco Holdings SA (Symbol: ITUB), Petroleo Brasileiro SA (Symbol: PBR) and Vale SA (Symbol: VALE)
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| Amount: | $500,000
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| Maturity: | Jan. 5, 2023
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| Coupon: | 15.1% per year, payable semiannually if stocks close at or above interest barrier values on related semiannual observation date
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| Price: | Par
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| Payout at maturity: | Par unless any stock finishes below barrier value, in which case full exposure to least-performing stock’s decline
|
| Call: | Automatically at par if each stock closes at or above initial share price on any semiannual observation date after one year
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| Initial prices: | $8.95 for Bradesco, $9.15 for Itau, $15.94 for Petrobras, $13.20 for Vale
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| Interest barrier values: | $6.265 for Bradesco, $6.405 for Itau, $11.158 for Petrobras, $9.24 for Vale; 70% of initial prices
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| Call thresholds: | $7.6075 for Bradesco, $7.7775 for Itau, $13.549 for Petrobras, $11.22 for Vale; 85% of initial prices
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| Barrier values: | $4.475 for Bradesco, $4.575 for Itau, $7.97 for Petrobras, $6.60 for Vale; 50% of initial prices
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| Strike date: | Dec. 31
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| Pricing date: | Jan. 2
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| Settlement date: | Jan. 7
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| Agent: | TD Securities (USA) LLC
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| Fees: | 1.5%
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| Cusip: | 89114RBK1
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