The Toronto-Dominion Bank (TD) has offered Callable Fixed 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 have a principal amount of $1,000 per Note and will pay an annual interest rate of 10.35%, payable monthly. The Notes are callable by TD on any monthly Call Payment Date, commencing on the third Interest Payment Date, with at least three business days' prior written notice, regardless of the closing values of the Reference Assets.
If TD does not call the Notes before maturity, the payment at maturity will depend on the final values of the Reference Assets relative to their barrier values (70% of their initial values). If the final value of each Reference Asset is greater than or equal to its barrier value, the payment at maturity will be $1,000 (the principal amount). If the final value of any Reference Asset is less than its barrier value, the payment at maturity will be $1,000 plus the product of $1,000 and the Least Performing Percentage Change, resulting in a potential loss for investors.
The Notes are unsecured and not insured or guaranteed by any governmental agency. Investors are exposed to the market risk of each Reference Asset and the credit risk of TD. The estimated value of the Notes on the pricing date was $991.40 per Note, less than the public offering price of $1,000 per Note.
Key risks include the potential for loss of principal if the Notes are not called before maturity and the final value of any Reference Asset is below its barrier value. Additionally, the Notes are subject to risks associated with the reference assets, such as market risks, changes in index composition, and small-capitalization company risks. The Notes also have complex features and involve potential conflicts of interest between investors and the Calculation Agent, as well as risks related to hedging activities and potential market disruption events.
