New Issue: TD Straight 4.90%, NVCC

TD Bank has announced:

a domestic public offering of Non-Cumulative Fixed Rate Preferred Shares (non-viability contingent capital (NVCC)), Series 11 (the “Series 11 Shares”).

TD has entered into an agreement with a group of underwriters led by TD Securities Inc. to issue, on a bought deal basis, 6 million Series 11 Shares at a price of $25.00 per share to raise gross proceeds of $150 million. TD has also granted the underwriters an option to purchase, on the same terms, up to an additional 2 million Series 11 Shares. This option is exercisable in whole or in part by the underwriters at any time up to two business days prior to closing of the offering.

The Series 11 Shares will yield 4.90% annually, with dividends payable quarterly, as and when declared by the Board of Directors of TD. The Series 11 Shares will be redeemable in whole or in part by TD on or after October 31, 2020, subject to regulatory consent, at a declining premium.

The expected closing date is July 21, 2015. TD will make an application to list the Series 11 Shares as of the closing date on the Toronto Stock Exchange. The net proceeds of the offering will be used for general corporate purposes.

It’s nice to see another Straight Perpetual on the market!

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