The Toronto-Dominion Bank (TD) is offering Callable Contingent Interest Barrier Notes linked to the least performing of the Nasdaq-100® Technology Sector IndexSM, the Russell 2000® Index, and the S&P 500® Index. The Notes have a term of approximately 3 years, with a maturity date around February 15, 2029, and a principal amount of $1,000 per note.
Key Features:
- Contingent Interest Payment: The Notes pay a contingent interest rate of approximately 9.50% per annum 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). If any reference asset falls below its barrier value, no interest 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 TD does not call the notes, the payment at maturity depends on the final value of the reference assets relative to their barrier value (65.00% of initial value):
- If all final values are greater than or equal to their barrier values, the payment is $1,000.
- If any final value is less than its barrier value, the payment is $1,000 plus the product of $1,000 and the least performing percentage change.
Risks:
- Loss of Investment: The Notes do not guarantee the return of principal, and investors may lose up to their entire investment if the final value of any reference asset is below its barrier value.
- No Interest Payment: If any reference asset falls below its contingent interest barrier value on a contingent interest observation date, no interest payment will be made.
- Reinvestment Risk: TD may call the notes prior to maturity, and there is no guarantee that investors can reinvest the proceeds 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 investors need to sell before maturity.
- Tax Uncertainty: The U.S. tax treatment of the Notes is uncertain and could differ materially from the described treatment.
Reference Assets:
- Nasdaq-100® Technology Sector IndexSM (NDXT): Measures the performance of technology companies in the Nasdaq-100 Index®.
- Russell 2000® Index (RTY): Measures the composite price performance of the smallest 2,000 companies in the Russell 3000® Index.
- S&P 500® Index (SPX): Intended to provide an indication of the pattern of common stock price movement based on the relative value of 500 companies.
Estimated Value: The estimated value of the Notes at the pricing date is expected to be between $915.00 and $950.00 per note, which is less than the public offering price of $1,000.00 per note.
