The Toronto-Dominion Bank (TD) has offered Step Down Autocallable Barrier Notes linked to the least performing of the Dow Jones Industrial Average® (INDU), the Nasdaq-100 Index® (NDX), and the Russell 2000® Index (RTY). The Notes will automatically call and pay a cash payment per Note equal to the Principal Amount plus a Call Premium if, on the applicable Call Observation Date (including the Final Valuation Date), the Closing Value of each Reference Asset is greater than or equal to its Call Threshold Value (100.00% of its Initial Value for each Call Observation Date prior to the Final Valuation Date, and 70.00% of its Initial Value, or Barrier Value, on the Final Valuation Date). The applicable Call Premium increases the longer the Notes are outstanding and is based on a per annum rate of 12.15% (the Call Rate).
If the Notes are not automatically called, meaning that the Closing Value of any Reference Asset is less than its Call Threshold Value on each Call Observation Date, including the Final Valuation Date, the Notes will pay a cash payment per Note at maturity equal to the sum of (1) $1,000 plus (2) the product of (i) $1,000 times (ii) the Least Performing Percentage Change. The Least Performing Percentage Change is the percentage decline of the Reference Asset with the lowest Percentage Change from its Initial Value to its Final Value. Investors will lose 1% of the Principal Amount of the Notes for each 1% that the Final Value of the Least Performing Reference Asset is less than its Initial Value, and may lose the entire Principal Amount.
The Notes do not pay periodic interest and do not guarantee the return of the Principal Amount. Investors are exposed to the market risk of each Reference Asset on each Call Observation Date and any decline in the value of one Reference Asset will not be offset or mitigated by a lesser decline or potential increase in the value of any other Reference Asset. If the Notes are not automatically called, investors may lose up to their entire investment in the Notes.
Key data:
- Principal Amount: $1,531,000
- Call Rate: 12.15% per annum
- Call Threshold Value (prior to Final Valuation Date): 100.00% of Initial Value
- Barrier Value (Final Valuation Date): 70.00% of Initial Value
Risks:
- The Notes do not guarantee the return of the Principal Amount and investors may lose up to their entire investment.
- The Notes do not pay periodic interest, and investors will lose a significant portion or all of their investment if the Notes are not automatically called.
- The potential positive return on the Notes is limited to the applicable Call Premium, regardless of any increase in the level of any Reference Asset.
- Investors are exposed to the market risk of each Reference Asset on each Call Observation Date.
- The Notes are linked to the least performing Reference Asset, increasing the risk of receiving no positive return and losing a significant portion or all of the initial investment compared to Notes linked to a single Reference Asset or fewer Reference Assets.
- The Notes are subject to risks associated with small-capitalization companies due to the inclusion of the Russell 2000® Index.
- The estimated value of the Notes is less than the public offering price and is based on TD's internal funding rate and pricing models, which may be different from other financial institutions'.
- There may not be an active trading market for the Notes, and sales in the secondary market may result in significant losses.
- The estimated value of the Notes is not a prediction of the prices at which they may sell in the secondary market, and such secondary market prices will likely be less than the public offering price and may be less than the estimated value.
- The Notes are subject to risks associated with hedging activities and conflicts of interest between TD and its affiliates, and the Calculation Agent.
Tax considerations:
- The U.S. tax treatment of the Notes is uncertain, and investors should consult their tax advisor.
- Canadian federal income tax consequences generally applicable to non-resident holders are summarized, but individuals should consult their own tax advisors.
The Notes are unsecured and are not insured or guaranteed by any governmental agency or instrumentality. The Notes will not be listed or displayed on any securities exchange or electronic communications network.
