TD.PF.H - Series 14 Prospectus – Toronto-Dominion Bank Preferred Shares

TD.PF.H – Series 14 Prospectus – Toronto-Dominion Bank Preferred Shares

The following is a set of excerpts from the prospectus document for the Series 14 preferreds. The excerpts, highlight the most relevant information, an investor should know when analyzing this preferred. A link to the prospectus is provided lower in this page. The original document for TD.PF.H – Series 14 Prospectus – Toronto-Dominion Bank Preferred Shares was used for the excerpts and the important information was highlighted for quick access.

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Excerpt: Size and initial yield

August 31, 2016 Prospectus Supplement The Toronto-Dominion Bank $1,000,000,000 40,000,000 Non-Cumulative 5-Year Rate Reset Preferred Shares, Series 14 (Non-Viability Contingent Capital (NVCC)) This offering of Non-Cumulative 5-Year Rate Reset Preferred Shares, Series 14 (Non-Viability Contingent Capital (NVCC)) (the “Series 14 Shares”) of The Toronto-Dominion Bank (the “Bank”) under this prospectus supplement (the “Prospectus Supplement”) consists of 40,000,000 Series 14 Shares. The holders of the Series 14 Shares will be entitled to receive fixed quarterly non-cumulative preferential cash dividends, as and when declared by the board of directors of the Bank (the “Board of Directors”), for the initial period from and including the closing date of this offering to but excluding October 31, 2021 (the “Initial Fixed Rate Period”),payable on the last day of January, April, July and October in each year (each three-month period ending on the last day of each such month, a “Quarter”), at a per annum rate of 4.85% per share, or $1.2125 per share per annum. Notwithstanding the foregoing, based on the anticipated closing date of this offering of September 8, 2016, the first dividend per Series 14 Share, if declared, will be payable on October 31, 2016 in respect of the period from and including September 8, 2016 to but excluding October 31, 2016, in the amount of $0.1761 per share. See “Details of the Offering”.

Excerpt: Reset Date and Yield Terms

For each five-year period after the Initial Fixed Rate Period (each, a “Subsequent Fixed Rate Period”), the holders of the Series 14 Shares will be entitled to receive fixed quarterly non-cumulative preferential cash dividends, as and when declared by the Board of Directors, payable on the last day of January, April, July and October in each year, in an amount per share per annum determined by multiplying the Annual Fixed Dividend Rate (as defined herein) applicable to such Subsequent Fixed Rate Period by $25.00. The Annual Fixed Dividend Rate for the ensuing Subsequent Fixed Rate Period will be determined by the Bank on the Fixed Rate Calculation Date (as defined herein) and will be equal to the sum of the Government of Canada Yield (as defined herein) on the Fixed Rate Calculation Date plus 4.12%. See “Details of the Offering”.

Excerpt: Conversion Terms

Option to Convert Into Series 15 Shares The holders of the Series 14 Shares will have the right, at their option, to convert their shares into Non- Cumulative Floating Rate Preferred Shares, Series 15 of the Bank (the “Series 15 Shares”), subject to certain conditions, on October 31, 2021 and on October 31 every five years thereafter. The holders of the Series 15 Shares will be entitled to receive quarterly floating rate non-cumulative preferential cash dividends, as and when declared by the Board of Directors, payable on the last day of January, April, July and October in each year (the initial quarterly dividend period and each subsequent quarterly dividend period is referred to as a “Quarterly Floating Rate Period”) in an amount per share determined by multiplying the applicable Floating Quarterly Dividend Rate (as defined herein) by $25.00. The Floating Quarterly Dividend Rate will be equal to the sum of the T-Bill Rate (as defined herein) plus 4.12% (calculated on the basis of the actual number of days elapsed in the applicable Quarterly Floating Rate Period divided by 365) determined on the Floating Rate Calculation Date (as defined herein). See “Details of the Offering”. *****Conversion to Common *****
Upon the occurrence of a Trigger Event (as defined herein), each Series 14 Share and/or Series 15 Share will be automatically and immediately converted, on a full and permanent basis, without the consent of the holders thereof, into that number of fully-paid common shares of the Bank (“Common Shares”) determined by dividing the Share Value (as defined herein) in respect of such Series 14 Shares and/or Series 15 Shares by the Conversion Price (as defined herein) (a “Contingent Conversion”). Investors should therefore carefully consider the disclosure with respect to the Bank, the Series 14 Shares, the Series 15 Shares, the Common Shares and the consequences of a Trigger Event included and incorporated by reference in this Prospectus Supplement. An investment in the Series 14 Shares is subject to certain risks. See “Risk Factors”. Subject to the provisions of the Bank Act (Canada) (the “Bank Act”), including the consent of the Superintendent of Financial Institutions (Canada) (the “Superintendent”), on October 31, 2021 and on October 31 every five years thereafter, the Bank may redeem all or any part of the then outstanding Series 14 Shares, at the Bank’s option without the consent of the holder, by the payment in cash of a sum per share so redeemed equal to $25.00 together with all declared and unpaid dividends to the date fixed for redemption. See “Details of the Offering”.