The Toronto-Dominion Bank is offering Callable Contingent Interest Barrier Notes linked to the least performing of the Nasdaq-100® Technology Sector IndexSM, the Russell 2000®Index, and the S&P 500®Index. The Notes will pay a 11.40% contingent interest rate if the closing value of each reference asset is greater than or equal to its 70.00% initial value; otherwise, no interest payment will be made. The bank may call the notes at any monthly call payment date (starting from the sixth contingent interest payment date) with at least three business days' notice, paying the principal amount plus any accrued interest. If not called, the payment at maturity will depend on the final value of each reference asset relative to its 60.00% initial value barrier: if above, investors receive $1,000 principal; if below, they receive $1,000 plus the product of $1,000 times the least performing percentage change, potentially resulting in a total loss of the principal investment.
Key risks and features:
- Return risks: The Notes do not guarantee principal repayment or interest payments. Investors may lose their entire investment if the least performing reference asset falls below its barrier value at maturity.
- Contingent interest: Interest payments are made only if all reference assets meet their respective barrier values on each observation date; otherwise, no payment is made.
- Issuer call feature: The bank may call the notes early, limiting the investment holding period and subjecting investors to reinvestment risk.
- Market risks: Investors are exposed to the market risks of each reference asset individually, with no diversification benefit.
- Liquidity risks: The Notes are not listed, and there may be no active secondary market, potentially leading to significant losses if sold before maturity.
- Taxation: The U.S. tax treatment is uncertain, with potential implications for income recognition and reporting. Canadian tax treatment applies to non-resident holders, with potential withholding taxes on interest and capital gains.
Reference assets:
- Nasdaq-100® Technology Sector IndexSM: Measures the performance of technology companies in the Nasdaq-100 Index®.
- Russell 2000®Index: Tracks the smallest 2,000 U.S. companies by market capitalization.
- S&P 500®Index: Represents the performance of 500 large U.S. companies.
Estimated value: The estimated value of the Notes is expected to be between $935.00 and $970.00 per Note, lower than the public offering price, due to costs, expected profits, and hedging activities. The estimated value is based on the bank's internal funding rate and models, which may differ from other financial institutions.
Conflicts of interest: The bank, its affiliates, and the calculation agent may have conflicts of interest due to hedging activities, business relationships with reference asset issuers, and potential market-making activities.
