The Toronto-Dominion Bank is offering Callable Contingent Interest Barrier Notes linked to the least performing of the Russell 2000® Index, the S&P 500® Index, and the shares of the State Street® Technology Select Sector SPDR® ETF, due on or about June 2, 2028. The Notes will pay a Contingent Interest Payment at a rate of approximately 15.65% 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, no Contingent Interest Payment will be paid.
Key features and risks:
- Callable Feature: TD may call the Notes in whole on any Call Payment Date (monthly, commencing on the third Contingent Interest Payment Date) upon at least three Business Days’ prior written notice, regardless of the Closing Values of the Reference Assets. If called, investors will receive principal plus any accrued Contingent Interest Payment.
- Contingent Interest Payment: The payment depends on the performance of the Reference Assets relative to their Contingent Interest Barrier Values. If any Reference Asset’s Final Value is less than its Barrier Value, investors may lose a portion or all of their initial investment.
- Risks: The Notes involve risks including market risk, credit risk, liquidity risk, and tax uncertainty. Investors are exposed to the market risk of each Reference Asset on each Contingent Interest Observation Date, and poor performance by any single Asset will negatively impact the return.
- Estimated Value: The estimated value of the Notes at the Pricing Date is expected to be between $945.00 and $980.00 per Note, which is less than the public offering price. The estimated value is based on TD’s internal funding rate and models, which may differ from other financial institutions.
- Tax Considerations: The U.S. tax treatment of the Notes is uncertain, and potential conflicts of interest exist due to TD’s role as the Calculation Agent and its hedging activities.
- Reference Assets: The Notes are linked to three Reference Assets, each with its own risks. The Russell 2000® Index and S&P 500® Index reflect price return, not total return. The State Street® Technology Select Sector SPDR® ETF is subject to risks associated with the technology sector and ETFs.
Investors should carefully consider the risks and consult their advisors before investing in the Notes.
