The Toronto-Dominion Bank (TD) is offering Callable Contingent Interest Barrier Notes linked to the least performing of the Nasdaq-100 Index®, the Russell 2000® Index and the EURO STOXX 50® Index. The Notes have a term of approximately 3 years, with a maturity date around December 22, 2028, and a public offering price of $1,000 per Note.
Key Features:
- Contingent Interest Payment: The Notes pay a rate of approximately 10.75% per annum if the closing value of each reference asset is greater than or equal to its contingent interest barrier value (70% of its initial value). If any reference asset falls below its barrier value, no payment is made.
- Issuer Call Feature: TD may call the Notes in whole at any monthly call payment date (starting from the third contingent interest payment date) upon at least three business days' notice, regardless of the reference asset values.
- Payment at Maturity: If not called, the payment at maturity depends on the final value of the reference assets relative to their barrier values. If all assets meet the threshold, the payment is $1,000. If any asset falls below, the payment is $1,000 plus the product of $1,000 and the least performing percentage change.
Risks:
- Loss of Investment: Investors may lose their entire investment if the final value of any reference asset is below its barrier value.
- No Contingent Interest Payment: No payment is made if any reference asset falls below its contingent interest barrier value on a payment date.
- Limited Upside: The maximum return is limited to the contingent interest payments made, regardless of any appreciation in the reference assets.
- Reinvestment Risk: The Notes may be called before maturity, and there is no guarantee of reinvestment 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 not listed, and there may be little or no secondary market, potentially leading to significant losses if sold before maturity.
- Credit Risk: Payments are subject to TD's credit risk.
- Taxation Risk: The U.S. tax treatment of the Notes is uncertain and could adversely affect investors.
Reference Assets:
- Nasdaq-100 Index® (NDX): 100 largest non-financial securities listed on the Nasdaq Stock Market®.
- Russell 2000® Index (RTY): Measures the composite price performance of the smallest 2,000 companies in the Russell 3000® Index.
- EURO STOXX 50® Index (SX5E): Covers 50 stocks of market sector leaders mainly from 11 Eurozone countries.
Estimated Value: The estimated value of the Notes at the pricing date is expected to be between $940.00 and $975.00 per Note, which is less than the public offering price.
