The Toronto-Dominion Bank (TD) has offered 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 Contingent Interest Payment of approximately 10.85% per annum only if, on the related Contingent Interest Observation Date, 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 23 months, subject to an Issuer Call.
- Reference Assets:
- Nasdaq-100® Technology Sector IndexSM (NDXT)
- Russell 2000® Index (RTY)
- S&P 500® Index (SPX)
- Principal Amount: $1,000 per Note
- Contingent Interest Rate: Approximately 10.85% per annum
- Contingent Interest Barrier Values:
- NDXT: 12,818.40
- RTY: 2,117.0569
- SPX: 5,249.552
- Barrier Values:
- NDXT: 10,987.20
- RTY: 1,814.6202
- SPX: 4,499.616
- Call Feature: TD may elect to call the Notes in whole on any Call Payment Date (monthly, commencing on the third Contingent Interest Payment Date) upon at least three Business Days’ prior written notice.
- Payment at Maturity:
- If called by TD: Principal Amount + any Contingent Interest Payment otherwise due.
- If not called by TD:
- If all Final Values are greater than or equal to their Barrier Values: Principal Amount of $1,000.
- If any Final Value is less than its Barrier Value: Principal Amount + (Principal Amount × Least Performing Percentage Change).
Risks:
- Loss of Investment: The Notes do not guarantee the return of the Principal Amount, and investors may lose up to their entire investment if the Final Value of any Reference Asset is less than its Barrier Value.
- No Contingent Interest Payment: Investors will not receive a Contingent Interest Payment if the Closing Value of any Reference Asset on the related Contingent Interest Observation Date is less than its Contingent Interest Barrier Value.
- Reinvestment Risk: TD may elect to call the Notes prior to maturity, and there is no guarantee that investors would be able to reinvest the proceeds at a comparable return.
- Market Risk: Investors are exposed to the market risk of each Reference Asset on each Contingent Interest Observation Date.
- Liquidity Risk: The Notes are unsecured and not listed, and there may be little or no secondary market for the Notes.
- 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 likely adversely affect the market value of the Notes.
- Taxation: The U.S. tax treatment of the Notes is uncertain, and investors should consult their tax advisor.
Conclusion:
The Callable Contingent Interest Barrier Notes offer a potentially high return but come with significant risks, including the possibility of losing the entire investment. Investors should carefully consider the risks and consult their financial advisors before investing.
