And now there are four.<\/p>\n
Hard on the heels of their second quarter report<\/a> comes a new issue announcement<\/a>:<\/p>\n it has entered into an agreement with a group of underwriters led by TD Securities Inc. for an issue of 8 million non-cumulative 5-Year Rate Reset Preferred Shares, Series S (the “Series S Shares”), carrying a face value of $25.00 per share, to raise gross proceeds of $200 million. TD intends to file in Canada a prospectus supplement to its January 11, 2007 base shelf prospectus in respect of this issue. Issue: Non-Cumulative 5-Year Rate Reset Class A Preferred Shares, Series S<\/p>\n Size: 8-million shares @ $25.00 = $200-million<\/p>\n Greenshoe: 2-million shares (= $50-million) up to two days prior to closing.<\/p>\n Ratings: DBRS: Pfd-1; S&P: P-1(low); Moody’s: Aa2<\/p>\n Dividends: 5.00% until first Exchange Date; reset to 5-Year Canadas + 160bp every exchange date.<\/p>\n Convertible: Back & forth between Series T Floaters every exchange date. Series T pays 90-day T-Bills + 160bp<\/p>\n Exchange Date: July 31, 2013 and every five years thereafter<\/p>\n Redemption: Series S & Series T redeemable every exchange date at $25.00. Series T redeemable any other time at $25.50.<\/p>\n Rank: Parri Passu with all other preferreds, senior to common<\/p>\n Closing: June 11, 2008<\/p>\n
\n TD has also granted the underwriters an option to purchase, on the same terms, up to an additional 2 million Series S Shares. This option is exercisable in whole or in part by the underwriters at any time up to two business days prior to closing. The maximum gross proceeds raised under the offering will be $250 million should this option be exercised in full.
\n The Series S Shares will yield 5.00% per cent annually, payable quarterly, as and when declared by the Board of Directors of the TD, for the initial period ending July 31, 2013. Thereafter, the dividend rate will reset every five years at a level of 160 basis points over the then five-year Government of Canada bond yield.
\n Holders of the Series S Shares will have the right to convert their shares into Non-cumulative Floating Rate Preferred Shares, Series T (the “Series T Shares”), subject to certain conditions, on July 31, 2013, and on July 31 every five years thereafter. Holders of the Series T Shares will be entitled to receive quarterly floating dividends, as and when declared by the
\nBoard of Directors of TD, equal to the three-month Government of Canada Treasury Bill yield plus 160 basis points.
\n The issue qualifies as Tier 1 capital for TD and the expected closing date is June 11, 2008.<\/p><\/blockquote>\n