The Toronto-Dominion Bank (“TD”) is offering Capped Buffered Notes linked to the S&P 500® Index, with a maturity date of August 4, 2027. The Notes provide unleveraged participation in the positive return of the S&P 500® Index, subject to a maximum redemption amount of $1,173.50 per Note. Investors will receive their principal amount at maturity if the final value of the index is between the initial value and a buffer value (85% of the initial value), but will lose 1% of the principal for each 1% the final value is below the buffer value, potentially losing up to 85% of the principal. The payment at maturity is not linked to the index value at any time other than the valuation date.
Investors should be aware of several risks associated with the Notes, including market risks related to the index and its constituents, credit risk related to TD, and liquidity risks due to the potential lack of a secondary market. The estimated value of the Notes at the pricing date is expected to be between $955.00 and $990.00 per Note, which is lower than the public offering price. The estimated value is based on TD’s internal funding rate and pricing models, which may differ from other financial institutions’ models.
The Notes are subject to TD’s credit risk, and changes in TD’s credit ratings or spreads may adversely affect the market value of the Notes. U.S. tax treatment of the Notes is uncertain, and investors should consult a tax advisor. The Notes are not intended for retail investors in the European Economic Area or the United Kingdom.
