The Toronto-Dominion Bank (TD) has offered Callable Contingent Interest Barrier Notes linked to the least performing of the Dow Jones Industrial Average® (INDU), the Nasdaq-100 Index® (NDX) and the Russell 2000® Index (RTY). The Notes have a principal amount of $1,000 per note and a maturity date of June 22, 2029.
Key Features:
- Contingent Interest Rate: 12.00% per annum, paid monthly 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). No payment is made if any reference asset's value falls below its barrier value.
- Issuer Call Feature: TD may call the notes in whole on any monthly call payment date (commencing on the third contingent interest payment date) with at least three business days' notice, regardless of reference asset values.
- Payment at Maturity: If not called, the payment at maturity depends on the final value of each reference asset relative to its barrier value:
- If all final values are greater than or equal to their barrier values: $1,000 (principal amount).
- If any final value is less than its barrier value: $1,000 (principal amount) plus the product of $1,000 and the least performing percentage change.
Risks:
- Loss of Investment: 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 Payments: No payments are made if any reference asset's value falls below its contingent interest barrier value on any contingent interest observation date.
- Limited Positive Return: The potential positive return is limited to the contingent interest payments received, if any.
- Reinvestment Risk: If TD calls the notes, 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: The U.S. tax treatment is uncertain, and the notes may be treated as prepaid derivative contracts with respect to the reference assets.
Reference Assets:
- Dow Jones Industrial Average® (INDU): Price-weighted index of 30 U.S. blue-chip companies.
- Nasdaq-100 Index® (NDX): Modified capitalization-weighted index of 100 of the 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 included in the Russell 3000® Index.
Estimated Value: The estimated value of the notes at the pricing date was $975.90 per note, less than the public offering price of $1,000.00.
