The Toronto-Dominion Bank (TD) has offered Autocallable Contingent Interest Barrier Notes linked to the least performing of the Nasdaq-100 Index®, the S&P 500® Index and the EURO STOXX 50® Index. The Notes will pay a Contingent Interest Payment at a rate of 9.65% per annum only if the Closing Value of each Reference Asset is greater than or equal to its Contingent Interest Barrier Value (70.00% of its Initial Value) on the related 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. The Notes will be automatically called if the Closing Value of each Reference Asset is greater than or equal to its Call Threshold Value (100.00% of its Initial Value) on any Call Observation Date. If the Notes are automatically called, TD will pay a cash payment per Note equal to the Principal Amount plus any Contingent Interest Payment otherwise due. If the Notes are not automatically called, the amount paid at maturity, in addition to any Contingent Interest Payment otherwise due, will depend on the Final Value of each Reference Asset relative to its Barrier Value (65.00% of its Initial Value). Specifically, if the Final Value of any Reference Asset is less than its Barrier Value, investors will lose 1% of the Principal Amount 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.
Key Data:
- Principal Amount: $1,000 per Note
- Contingent Interest Rate: 9.65% per annum
- Contingent Interest Barrier Value: 70.00% of Initial Value
- Call Threshold Value: 100.00% of Initial Value
- Barrier Value: 65.00% of Initial Value
- Maturity Date: August 31, 2026
Risks:
- The Notes do not guarantee the return of the Principal Amount and investors may lose up to their entire investment.
- Investors will not receive the Contingent Interest Payment if the Closing Value of any Reference Asset is less than its Contingent Interest Barrier Value on a Contingent Interest Observation Date.
- The potential positive return on the Notes is limited to the Contingent Interest Payments paid, if any.
- The Notes may be automatically called prior to the Maturity Date, subject to reinvestment risk.
- The amounts payable on the Notes are not linked to the value of the Least Performing Reference Asset at any time other than on the Contingent Interest Observation Dates and Call Observation Dates.
- The Contingent Interest Rate reflects the volatility of each Reference Asset and may not be sufficient to compensate for the risk of loss at maturity.
- Investors are exposed to the market risk of each Reference Asset on each Contingent Interest Observation Date.
- The Notes are linked to the least performing Reference Asset, increasing the risk of no Contingent Interest Payments and losing a significant portion or all of the initial investment at maturity.
- The Notes are unsecured and not insured or guaranteed by any governmental agency.
- The Notes will not be listed or displayed on any securities exchange or electronic communications network.
- The Notes involve risks not associated with conventional debt securities, including market risk, credit risk, and tax risk.
Conclusion:
Investment in the Notes involves significant risks, including the potential loss of the entire principal amount. The return on the Notes is contingent upon the performance of the least performing Reference Asset and is subject to various risks, including market risk, credit risk, and tax risk. Investors should carefully consider these risks and consult with their investment, legal, tax, and accounting advisors before investing in the Notes.
