The Toronto-Dominion Bank has announced (on June 5):
that it will exercise its right to redeem all of its 5,387,491 outstanding Non-cumulative Class A First Preferred Shares, Series S (the “Series S Shares”) on July 31, 2018 at the price of $25.00 per Series S Share, for an aggregate total of approximately $135 million.
TD also announced that it will exercise its right to redeem all of its 4,612,509 outstanding Non-cumulative Class A First Preferred Shares, Series T (the “Series T Shares”) on July 31, 2018 at the price of $25.00 per Series T Share, for an aggregate total of approximately $115 million.
On May 24, 2018, TD announced that dividends of $0.2106875 per Series S Share and $0.16787500 per Series T Share had been declared. These will be the final dividends on the Series S Shares and Series T Shares, respectively, and will be paid in the usual manner on July 31, 2018 to shareholders of record on July 10, 2018, as previously announced. After July 31, 2018, the Series S Shares and Series T Shares will cease to be entitled to dividends and the only remaining rights of holders of such shares will be to receive payment of the redemption amount.
With the announcement of the redemption of the Series S Shares and Series T Shares, the right of any holder of Series S Shares or Series T Shares to convert such shares will cease and terminate.
Beneficial holders who are not directly the registered holder of Series S Shares or Series T Shares should contact the financial institution, broker or other intermediary through which they hold these shares to confirm how they will receive their redemption proceeds. Inquiries should be directed to our Registrar and Transfer Agent, AST Trust Company (Canada), at 1-800-387-0825 (or in Toronto 416-682-3860).
TD.PR.S was announced on 2008-5-29 as a FixedReset, 5.00%+160, just the fourth FixedReset to be announced. It reset to 3.371% in 2013 and there was a 46% conversion to the FloatingReset TD.PR.T.
As these issues are NVCC non-compliant the redemption comes as no surprise, although there has always been a slim chance that the very low Issue Reset Spread would tempt the bank into leaving them outstanding past the time during which they could claim the issues as Tier 1 Capital.
This entry was posted on Friday, June 8th, 2018 at 8:52 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
TD.PR.S & TD.PR.T To Be Redeemed
The Toronto-Dominion Bank has announced (on June 5):
TD.PR.S was announced on 2008-5-29 as a FixedReset, 5.00%+160, just the fourth FixedReset to be announced. It reset to 3.371% in 2013 and there was a 46% conversion to the FloatingReset TD.PR.T.
As these issues are NVCC non-compliant the redemption comes as no surprise, although there has always been a slim chance that the very low Issue Reset Spread would tempt the bank into leaving them outstanding past the time during which they could claim the issues as Tier 1 Capital.
This entry was posted on Friday, June 8th, 2018 at 8:52 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.