TD.PF.H is a FixedReset, 4.85%+412, NVCC, announced 2016-8-29. It is a monster issue, the largest in the market, with 40-million shares (=$1-billion p.v.) outstanding.
The issue settled today and traded a whopping 2,936,651 shares in a range of 25.33-50 prior to closing at 25.43-46, 75×19. This is the ninth highest number of shares traded on a single day in my entire database (which contains just over a million records going back to 1993) and the highest since MFC.PR.A traded nearly 3.6-million shares on 2004-2-13.
TD.PF.H will be tracked by HIMIPref™ and has been assigned to the FixedReset subindex. Vital statistics are:
| TD.PF.H | FixedReset | YTW SCENARIO Maturity Type : Call Maturity Date : 2021-10-31 Maturity Price : 25.00 Evaluated at bid price : 25.43 Bid-YTW : 4.53 % |
Implied Volatility analysis shows it to be slightly expensive to its peers at current levels:
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As a matter of interest, TD has just issued sub-debt in the US market:
The Toronto-Dominion Bank (“TD” or the “Bank”) today announced a U.S. offering of US$1.5 billion of 3.625% Non-Viability Contingent Capital Subordinated Notes due 2031 (the “Notes”), which will constitute subordinated indebtedness of the Bank. The Notes are registered with the U.S. Securities and Exchange Commission. The Notes will qualify as Tier 2 capital of the Bank.
The Notes are expected to be issued on September 15, 2016 and will bear interest at a fixed rate of 3.625% per annum (paid semi-annually) to, but excluding, September 15, 2026, and at the 5-Year Mid-Swap Rate plus 2.205% thereafter (paid semi-annually) to, but excluding, September 15, 2031.
The Bank may, at its option, with the prior approval of the Superintendent of Financial Institutions (Canada), redeem the Notes on September 15, 2026, in whole at par plus accrued and unpaid interest on not more than 60 nor less than 30 days’ notice to holders. Net proceeds from the issuance of the Notes will be used for general corporate purposes.
Yield baby, yield.
Can TD deliver on the elevated offering?