TD to issue NVCC preferred shares

Toronto-Dominion Bank has announced a domestic public offering of Series 14 Non-Cumulative 5-Year Rate Reset Preferred Shares.

TD has entered into an agreement with a group of underwriters led by TD Securities Inc. to issue, on a bought deal basis, 12 million Series 14 Shares at a price of $25 per share to raise gross proceeds of $300 million.

TD has also granted the underwriters an option to purchase, on the same terms, up to an additional 2 million Series 14 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 Series 14 Shares will yield 4.85% annually, with dividends payable quarterly (as and when declared by the Board of Directors of TD, for the initial period ending October 31, 2021). Then, the dividend rate will reset every five years at a level of 4.12% over the then five-year Government of Canada bond yield.

The expected closing date is September 8, 2016. TD will make an application to list the Series 14 Shares as of the closing date on the Toronto Stock Exchange. The net proceeds of the offering will be used for general corporate purposes.

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