{"id":3644,"date":"2008-10-27T15:48:40","date_gmt":"2008-10-27T19:48:40","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=3644"},"modified":"2008-10-27T15:48:40","modified_gmt":"2008-10-27T19:48:40","slug":"new-issue-td-fixed-reset-560274","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=3644","title":{"rendered":"New Issue: TD Fixed-Reset, 5.60%+274"},"content":{"rendered":"

TD Bank has announced<\/a>:<\/p>\n

that 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 Class A Preferred Shares, Series AC (the Series AC Shares), carrying a face value of $25.00 per share, to raise gross proceeds of $200 million. TDBFG intends to file in Canada a prospectus supplement to its January 11, 2007 base shelf prospectus in respect of this issue.<\/p>\n

TDBFG has also granted the underwriters an option to purchase, on the same terms, up to an additional 2 million Series AC 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.<\/p>\n

The Series AC Shares will yield 5.60% annually, payable quarterly, as and when declared by the Board of Directors of TDBFG, for the initial period ending January 31, 2014. Thereafter, the dividend rate will reset every five years at a level of 274 basis points over the then five-year Government of Canada bond yield.<\/p>\n

Holders of the Series AC Shares will have the right to convert their shares into non-cumulative Floating Rate Class A Preferred Shares, Series AD (the Series AD Shares), subject to certain conditions, on January 31, 2014, and on January 31st every five years thereafter. Holders of the Series AD Shares will be entitled to receive quarterly floating dividends, as and when declared by the Board of Directors of TDBFG, equal to the three-month Government of Canada Treasury bill yield plus 274 basis points.<\/p>\n

The issue is anticipated to qualify as Tier 1 capital for TDBFG and the expected closing date is November 5, 2008. TDBFG will make an application to list the Series AC Shares as of the closing date on the Toronto Stock Exchange.<\/p><\/blockquote>\n

The first dividend will be for $0.3337, payable January 31, based on anticipated closing November 5, 2008.<\/p>\n

Well … if this doesn’t knock hell out of the Fixed-Reset market, I don’t know what will! I mentioned when reviewing the BoC Monetary Policy Report<\/a> that we could see more at these levels …<\/p>\n

Update, 2008-11-4<\/b> TD has announced<\/a>:<\/p>\n

that a group of underwriters led by TD Securities Inc. has exercised the option to purchase an additional 0.8 million non-cumulative 5-Year Reset Preferred Shares, Series AC (the Series AC Shares) carrying a face value of $25.00 per share. This brings the total issue announced on October 27, 2008, and expected to close November 5, 2008, to 8.8 million shares and gross proceeds raised under the offering to $220 million.<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

TD Bank has announced: that 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 Class A Preferred Shares, …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17],"tags":[],"class_list":["post-3644","post","type-post","status-publish","format-standard","hentry","category-new-issues"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/3644","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3644"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/3644\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3644"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3644"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3644"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}