PrefBlog

The Toronto-Dominion Bank has announced:

that it does not intend to exercise its right to redeem all or any part of the currently outstanding 20 million Non-Cumulative 5-Year Rate Reset Preferred Shares, Series 5 (Non-Viability Contingent Capital (NVCC)) (the “Series 5 Shares”) of TD on January 31, 2020. As a result and subject to certain conditions set out in the prospectus supplement dated December 9, 2014 relating to the issuance of the Series 5 Shares, the holders of the Series 5 Shares have the right to convert all or part of their Series 5 Shares, on a one-for-one basis, into Non-Cumulative Floating Rate Preferred Shares, Series 6 (NVCC) (the “Series 6 Shares”) of TD on January 31, 2020. Holders who do not exercise their right to convert their Series 5 Shares into Series 6 Shares on such date will continue to hold their Series 5 Shares.

The foregoing conversion right is subject to the conditions that: (i) if TD determines that there would be less than 1,000,000 Series 6 Shares outstanding after taking into account all shares tendered for conversion on January 31, 2020, then holders of Series 5 Shares will not be entitled to convert their shares into Series 6 Shares, and (ii) alternatively, if TD determines that there would remain outstanding less than 1,000,000 Series 5 Shares after taking into account all shares tendered for conversion on January 31, 2020, then all remaining Series 5 Shares will automatically be converted into Series 6 Shares on a one-for-one basis on January 31, 2020. In either case, TD will give written notice to that effect to holders of Series 5 Shares no later than January 24, 2020.

The dividend rate applicable to the Series 5 Shares for the 5-year period from and including January 31, 2020 to but excluding January 31, 2025, and the dividend rate applicable to the Series 6 Shares for the 3-month period from and including January 31, 2020 to but excluding April 30, 2020, will be determined and announced by way of a press release on January 2, 2020.

Beneficial owners of Series 5 Shares who wish to exercise their conversion right should communicate as soon as possible with their broker or other nominee to obtain instructions for exercising such right during the conversion period, which runs from January 2, 2020 until 5:00 p.m. (Toronto time) on January 16, 2020.

Inquiries should be directed to TD’s Registrar and Transfer Agent, AST Trust Company (Canada), at 1-800-387-0825 (or in Toronto 416-682-3860).

TD.PF.C is a FixedReset, 3.75%+225, that commenced trading 2014-12-16 after being announced 2014-12-5. It is tracked by HIMIPref™ and is assigned to the FixedReset-Discount subindex.

This entry was posted on Thursday, December 19th, 2019 at 11:52 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.