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 S&P 500® Index. The Notes will pay a Contingent Interest Payment at a rate of at least 9.20% 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). 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.
Key Features:
- Term: Approximately 2 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 9.20% per annum.
- Contingent Interest Barrier Value: 75.00% of the Initial Value of each Reference Asset.
- Issuer Call Feature: TD may call the Notes in whole on any Call Payment Date (monthly, commencing on the sixth Contingent Interest Payment Date) upon at least three Business Days’ prior written notice.
- Payment at Maturity:
- If TD calls the Notes, TD will pay the Principal Amount plus any Contingent Interest Payment otherwise due.
- If TD does not call the Notes, the payment will be $1,000 plus the product of $1,000 and the Least Performing Percentage Change if the Final Value of any Reference Asset is less than its Barrier Value (70.00% of its Initial Value).
Risks:
- Loss of Investment: The Notes do not guarantee the return of the Principal Amount, and investors may lose up to their entire investment if the Final Value of any Reference Asset is less than its Barrier Value.
- No Contingent Interest Payment: Investors will not receive a Contingent Interest Payment if the Closing Value of any Reference Asset on the related Contingent Interest Observation Date is less than its Contingent Interest Barrier Value.
- Issuer Call Risk: TD may call the Notes prior to maturity, potentially limiting the holding period and reinvestment risk.
- Market Risk: Investors are exposed to the market risk of each Reference Asset on each Contingent Interest Observation Date.
- Liquidity Risk: The Notes may not be actively traded, and secondary market prices could be significantly less than the public offering price.
- Taxation: The U.S. tax treatment of the Notes is uncertain, and investors should consult their tax advisors.
Estimated Value: The estimated value of the Notes at the Pricing Date is expected to be between $920.00 and $955.00 per Note, which is less than the public offering price of $1,000.00 per Note. The estimated value is based on TD's internal funding rate and pricing models, which may differ from other financial institutions.
Conclusion: The Notes involve significant risks and are not suitable for all investors. Investors should carefully consider the risks and consult their financial advisors before investing.
