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- Toronto-Dominion Bank (NYSE:TD) priced a U.S. public offering of US$1B of 5.146% subordinated notes due 2034, the company said late Tuesday.
- The non-viability contingent capital subordinated notes will bear interest at a fixed rate of 5.146% per year, paid semi-annually, to, but excluding, Sept. 10, 2029. On that date, to, but excluding Sept. 10, 2034, interest on the notes will reset at an interest rate per year equal to the sum, as determined by TD or its designee, of the prevailing U.S. Treasury rate plus 1.500%.
- The expected closing date of the offering is Sept. 10, 2024.
- TD (TD) may, at its option, with the approval of Canada’s Superintendent of Financial Institutions, redeem the notes on Sept. 10, 2029.
- Net proceeds will be used for general corporate purposes, which may include the redemption of outstanding capital securities and/or the repayment of other outstanding liabilities. The notes are expected to qualify as Tier 2 capital of the company for regulatory purposes.
- Toronto-Dominion (TD) stock dropped 0.5% in Wednesday premarket trading.
