The Toronto-Dominion Bank has announced:
that it will exercise its right to redeem all of its 20,000,000 outstanding Non-Cumulative 5-Year Rate Reset Class A First Preferred Shares, Series 3 (Non-Viability Contingent Capital) (the “Series 3 Shares”) on July 31, 2024 at the price of $25.00 per Series 3 Share for an aggregate total of approximately $500 million. The redemption has been approved by the Office of the Superintendent of Financial Institutions.
On May 23, 2024, TD announced that dividends of $0.2300625 per Series 3 Share had been declared. These will be the final dividends on the Series 3 Shares, and will be paid in the usual manner on July 31, 2024 to shareholders of record on July 10, 2024, as previously announced. After July 31, 2024, the Series 3 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.
Beneficial holders who are not directly the registered holder of Series 3 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, TSX Trust Company, at 1-800-387-0825 (or in Toronto 416-682-3860).
TD.PF.B was issued as a FixedReset 3.80%+227, NVCC-compliant, issue that commenced trading 2014-7-31 after being announced 2014-7-22. TD provided notice of extension on 2019-6-25. The issue reset At 3.681% effective 2019-7-31. I recommended against conversion and there was no conversion. This redemption was foreshadowed by a big LRCN issue. The issue is tracked by HIMIPref™ and is assigned to the FixedReset (Discount) subindex.
Thanks to Assiduous Reader niagara for bringing this to my attention!
[…] Returns have been wonderful following the lows of the TXPR price index on 2023-10-31, but yields remain elevated well above those available on instruments with similar risk; for instance, Brookfield Renewable Partners L.P. recently noted they are refinancing BEP.PR.O on the “green perpetual subordinated notes” market at 70bp under the presumed reset rate of BEP.PR.O. Most of the refunding activity has been undertaken by the banks, most recently TD.PF.M and TD.PF.B. […]