The Toronto-Dominion Bank is offering Callable Contingent Interest Barrier Notes linked to the least performing of the Nasdaq-100 Index®, the Russell 2000® Index and the S&P 500® Index. The Notes will pay a Contingent Interest Payment at a rate of 10.05% per annum only if the Closing Value of each Reference Asset is greater than or equal to its Contingent Interest Barrier Value (70.00% of its Initial Value). If the Closing Value of any Reference Asset is less than its Contingent Interest Barrier Value on a Contingent Interest Observation Date, no Contingent Interest Payment will accrue or be payable.
Key Features:
- Term: Approximately 2 years, subject to an Issuer Call.
- Reference Assets: Nasdaq-100 Index® (NDX), Russell 2000® Index (RTY), and S&P 500® Index (SPX).
- Contingent Interest Payment: 10.05% per annum, paid monthly, if the Closing Value of each Reference Asset is greater than or equal to its Contingent Interest Barrier Value.
- Issuer Call Feature: TD may elect to call the Notes in whole on any Call Payment Date (monthly, commencing on the sixth Contingent Interest Payment Date) upon at least three Business Days’ prior written notice, regardless of the Closing Values of the Reference Assets.
- Payment at Maturity: If TD does not elect to call the Notes prior to maturity, the payment will be:
- $1,000 if the Final Value of each Reference Asset is greater than or equal to its Barrier Value (70.00% of its Initial Value).
- $1,000 + ($1,000 × Least Performing Percentage Change) if the Final Value of any Reference Asset is less than its Barrier Value.
Risks:
- Return Risk: The Notes do not guarantee the return of the Principal Amount and investors may lose up to their entire investment.
- Interest Rate Risk: The Notes are more sensitive to fluctuations in interest rates due to the contingent interest and Issuer Call features.
- Market Risk: Investors are exposed to the market risk of each Reference Asset on each Contingent Interest Observation Date.
- Liquidity Risk: The Notes are not listed and may not have an active trading market, potentially leading to significant losses if sold in the secondary market.
- Credit Risk: Investors are subject to TD’s credit risk, and any decrease in TD’s credit ratings or increase in the credit spreads charged by the market will adversely affect the market value of the Notes.
- Taxation Risk: The U.S. tax treatment of the Notes is uncertain and could adversely affect investors.
Estimated Value: The estimated value of the Notes at the Pricing Date is expected to be between $940.00 and $975.00 per Note, which is less than the public offering price of $1,000.00 per Note.
