Published on 8/19/2021 in the Prospect News Structured Products Daily.
New Issue: TD Bank sells $1.58 million autocallable contingent interest barrier notes on four stocks
By Wendy Van Sickle
Columbus, Ohio, Aug. 19 – Toronto-Dominion Bank priced $1.58 million of autocallable contingent interest barrier notes due June 20, 2024 linked to the least performing of the stocks of Apple Inc., Amazon.com, Inc., Alphabet Inc. and Microsoft Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent semiannual interest payment at the rate of 9.5% 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 semiannual observation date after six months.
If the notes are not called, the payout at maturity will be par plus any contingent interest payment due if each stock finishes at or above the coupon barrier.
If any stock lags below the coupon barrier but all finish at or above the barrier price, 65% of the initial share price, the payout at maturity will be par. Otherwise, investors will be fully exposed to the laggard stock’s decline from its initial share price.
TD Securities (USA) LLC is the agent.
| Issuer: | Toronto-Dominion Bank
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| Issue: | Autocallable contingent interest barrier notes
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| Underlying stocks: | Apple Inc., Amazon.com, Inc., Alphabet Inc., Microsoft Corp.
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| Amount: | $1.58 million
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| Maturity: | June 20, 2024
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| Coupon: | 9.5% annual rate, payable semiannually if all stocks close at or above their coupon barrier prices on the relevant observation date
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| Price: | Par
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| Payout at maturity: | Par plus the final coupon if all stocks finish above coupon barrier; if the worst performer lags below coupon barrier but declines no more than 35%, par; otherwise, lose 1% for every 1% decline of the worst performer from its initial share price
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| Call: | Automatically at par plus contingent interest payment if each stock closes at or above its initial share price on any semiannual observation date after six months
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| Initial share prices: | $129.64 for Apple, $3,383.13 for Amazon, $2,520.66 for Alphabet, $258.36 for Microsoft
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| Coupon barrier prices: | $90.748 for Apple, $2,368.191 for Amazon, $1,764.462 for Alphabet, $180.852 for Microsoft; 70% of initial levels
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| Barrier value prices: | $84.266 for Apple, $2,199.0345 for Amazon, $1,638.429 for Alphabet, $167.934 for Microsoft; 65% of initial levels
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| Pricing date: | June 16
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| Settlement date: | June 21
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| Agent: | TD Securities (USA) LLC
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| Fees: | 2.1187%
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| Cusip: | 89114TLG5
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