The Toronto-Dominion Bank (“TD”) has offered Leveraged Barrier Notes linked to the S&P 500® Index with a maturity date of September 12, 2030. The Notes provide 111.60% leveraged participation in the positive return of the S&P 500® Index if its value increases from the Initial Value to the Final Value. Investors will receive their Principal Amount at maturity if the Final Value is between the Initial Value and a Barrier Value (90.00% of the Initial Value). If the Final Value falls below the Barrier Value, investors will lose 1% of the Principal Amount for each 1% the Final Value is below the Initial Value, potentially losing their entire investment.
The Notes are unsecured and not insured or guaranteed by any government agency. They will not be listed on any securities exchange. Investing in the Notes involves complex features and risks, including:
- Return Risks: The Notes do not guarantee principal repayment and investors may lose their entire investment if the Final Value falls below the Barrier Value.
- Liquidity Risks: The Notes may have limited liquidity, and secondary market prices could be significantly lower than the public offering price.
- Reference Asset Risks: The value of the S&P 500® Index can fluctuate due to various factors, impacting the Notes' value.
- Hedging Risks: TD may engage in hedging activities, which could be subject to market forces beyond their control.
- Credit Risks: Investors are subject to TD's credit risk, and any decrease in TD's credit ratings could adversely affect the Notes' market value.
- Taxation Risks: The tax treatment of the Notes, particularly for U.S. and Canadian investors, is uncertain and could have adverse tax consequences.
The estimated value of the Notes is less than the public offering price and is based on TD's internal funding rate and pricing models. The estimated value is not a prediction of secondary market prices, which could be substantially lower due to various factors.
