{"id":4988,"date":"2009-01-15T14:36:23","date_gmt":"2009-01-15T18:36:23","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=4988"},"modified":"2009-01-15T14:36:23","modified_gmt":"2009-01-15T18:36:23","slug":"td-capital-trust-issuing-innovative-tier-1-capital","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=4988","title":{"rendered":"TD Capital Trust Issuing Innovative Tier 1 Capital"},"content":{"rendered":"

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

that TD Capital Trust IV (the “Trust”), a subsidiary of TDBFG, and TDBFG have entered into an agreement with a syndicate of underwriters led by TD Securities Inc. for an issue of $550,000,000 TD Capital Trust IV Notes – Series 1 due June 30, 2108 (“TD CaTS IV – Series 1”) and $450,000,000 TD Capital Trust IV Notes – Series 2 due June 30, 2108 (“TD CaTS IV – Series 2”) (collectively, the “TD CaTS IV Notes”). The offering will raise aggregate gross proceeds of $1 billion. TD Capital Trust IV and TDBFG intend to file a final prospectus with the securities regulators in each of the provinces and territories of Canada with respect to the offering of the TD CaTS IV Notes.<\/p>\n

TDBFG anticipates the TD CaTS IV Notes will qualify as Tier 1 Capital of TDBFG. Any Tier 1 Capital over the 15% regulatory limit will temporarily be counted as Tier 2B Capital. The expected closing date is January 26, 2009.<\/p>\n

From the date of issue to, but excluding, June 30, 2019, interest on the TD CaTS IV – Series 1 is payable semi-annually at a rate of 9.523% per year. Starting on June 30, 2019, and on every fifth anniversary thereafter until June 30, 2104, the interest rate on the TD CaTS IV – Series 1 will reset as described in the prospectus.<\/p>\n

From the date of issue to, but excluding June 30, 2039, interest on each TD CaTS IV – Series 2 is payable semi-annually at a rate of 10.00% per year. Starting on June 30, 2039, and on every fifth anniversary thereafter until June 30, 2104, the interest rate on the TD CaTS IV – Series 2 will reset as described in the prospectus.<\/p>\n

On or after June 30, 2014, the Trust may, at its option and subject to certain conditions, redeem the TD CaTS IV – Series 1 or the TD CaTS IV – Series 2, in each case, in whole or in part.<\/p>\n

In certain circumstances, the TD CaTS IV Notes or interest thereon may be automatically exchanged or paid by the issuance of non-cumulative Class A first preferred shares of the Bank.<\/p>\n

The TD CaTS IV Notes will not be listed on any stock exchange.<\/p><\/blockquote>\n

Only the Preliminary Prospectus is available on SEDAR. The rate reset is off 5-Year Canadas, but the spread is not defined. These notes use the recently approved structure<\/a>, whereby the notes are sold with a definite maturity and carry interest that can cumulate in preferred shares when cash is not paid.<\/p>\n

The initial rate is fixed to 2019, as noted in the press release. At first blush, and subject to a look at the final prospectus, particularly with respect to the reset rate and issuer’s redemption options, these notes look superior to TD’s 6.25%+437 Fixed-Reset Preferreds<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

TD has announced: that TD Capital Trust IV (the “Trust”), a subsidiary of TDBFG, and TDBFG have entered into an agreement with a syndicate of underwriters led by TD Securities Inc. for an issue of …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[25],"tags":[],"class_list":["post-4988","post","type-post","status-publish","format-standard","hentry","category-regulatory-capital"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/4988","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=4988"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/4988\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4988"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4988"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4988"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}