The Toronto-Dominion Bank is offering Callable Contingent 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 will pay a Contingent Interest Payment at a rate of at least 7.35% per annum only if the Closing Value of each Reference Asset is greater than or equal to its Contingent Interest Barrier Value (75.00% of its Initial Value) on the Contingent Interest Observation Date. 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 on the related Contingent Interest Payment Date.
Key Features:
- Term: Approximately 5 years, subject to an Issuer Call.
- Reference Assets: Nasdaq-100 Index® (NDX), Russell 2000® Index (RTY), and S&P 500® Index (SPX).
- Contingent Interest Rate: At least 7.35% per annum.
- Contingent Interest Barrier Value: 75.00% of the Initial Value of each Reference Asset.
- Barrier Value: 60.00% of the Initial Value of each Reference Asset.
- Callable: TD may elect to call the Notes in whole on any Call Payment Date (monthly, commencing on the twelfth Contingent Interest Payment Date and other than the Maturity Date) upon at least three Business Days’ prior written notice, regardless of the Closing Values of the Reference Assets.
Payment at Maturity:
- If the Final Value of each Reference Asset is greater than or equal to its Barrier Value: the Principal Amount of $1,000.
- If the Final Value of any Reference Asset is less than its Barrier Value: $1,000 plus ($1,000 × Least Performing Percentage Change).
Risks:
- Return Risk: The Notes do not guarantee the return of the Principal Amount and investors may lose up to their entire investment.
- Market Risk: Investors are exposed to the market risk of each Reference Asset on each Contingent Interest Observation Date.
- Liquidity Risk: The Notes are not listed and may not have an active trading market.
- Credit Risk: Investors are subject to TD’s credit risk.
- Tax Risk: The U.S. tax treatment of the Notes is uncertain.
Hedging Activities and Conflicts of Interest:
- TD, its Agent, and/or its other affiliates may engage in hedging activities, which could present a conflict of interest between the holders’ interest in the Notes and the interests of TD and its affiliates.
- TD, its Agent, and/or its other affiliates may engage in business with one or more Reference Asset Constituent Issuers, which could also present a conflict of interest.
Estimated Value:
- The estimated value of the Notes at the time the terms of the Notes are set on the Pricing Date is expected to be between $900.00 and $935.00 per Note, as the estimated value is based on TD’s internal funding rate and other factors.
- The estimated value is not a prediction of the prices at which the Notes may trade in the secondary market, and such secondary market prices, if any, will likely be less than the public offering price and may be less than the estimated value.
