The Toronto-Dominion Bank has announced (on September 12):
that it will exercise its right to redeem all of its 5,481,853 outstanding Non-cumulative Class A First Preferred Shares, Series Y (the “Series Y Shares”) on October 31, 2018 at the price of $25.00 per Series Y Share, for an aggregate total of approximately $137 million.
TD also announced that it will exercise its right to redeem all of its 4,518,147 outstanding Non-cumulative Class A First Preferred Shares, Series Z (the “Series Z Shares”) on October 31, 2018 at the price of $25.00 per Series Z Share, for an aggregate total of approximately $113 million.
On August 30, 2018, TD announced that dividends of $ 0.22246875 per Series Y Share and $ 0.18293750 per Series Z Share had been declared. These will be the final dividends on the Series Y Shares and Series Z Shares, respectively, and will be paid in the usual manner on October 31, 2018 to shareholders of record on October 10, 2018, as previously announced. After October 31, 2018, the Series Y Shares and Series Z 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 Y Shares and Series Z Shares, the right of any holder of Series Y Shares or Series Z Shares to convert such shares will cease and terminate.
Beneficial holders who are not directly the registered holder of Series Y Shares or Series Z 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.Y was announced 2008-7-7 as a FixedReset, 5.10%+168, as the seventh FixedReset issue, and an extension was announced 2013-9-26. The issue reset at 3.5595%
Roughly 45% of the issue was converted to the FloatingReset, TD.PR.Z, in 2013, and the FloatingReset traded at a tiny premium over TD.PR.Y. It had an Implied Bill Rate of 2.01% on opening day, the lowest of five FixedReset/FloatingReset pairs at the time.
Both issues have been tracked by HIMIPref™. TD.PR.Y is currently included in the FixedReset (Bank Non-NVCC) subindex, while TD.PR.Z has been relegated to Scraps on volume concerns.
This entry was posted on Wednesday, September 19th, 2018 at 9:31 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.Y & TD.PR.Z To Be Redeemed
The Toronto-Dominion Bank has announced (on September 12):
TD.PR.Y was announced 2008-7-7 as a FixedReset, 5.10%+168, as the seventh FixedReset issue, and an extension was announced 2013-9-26. The issue reset at 3.5595%
Roughly 45% of the issue was converted to the FloatingReset, TD.PR.Z, in 2013, and the FloatingReset traded at a tiny premium over TD.PR.Y. It had an Implied Bill Rate of 2.01% on opening day, the lowest of five FixedReset/FloatingReset pairs at the time.
Both issues have been tracked by HIMIPref™. TD.PR.Y is currently included in the FixedReset (Bank Non-NVCC) subindex, while TD.PR.Z has been relegated to Scraps on volume concerns.
This entry was posted on Wednesday, September 19th, 2018 at 9:31 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.