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Preferred Share Description
Toronto-Dominion Bank (TD.PF.A)
3.90% Non-Cumulative, Redeemable, NVCC** Rate Reset preferred shares, Series 1
Prospectus - May 28, 2014
DBRS Credit Rating: May 30, 2019 - DBRS upgraded the long-term ratings of The Toronto-Dominion Bank and its related entities, including TD’s Long-Term Issuer Rating to AA (high) from AA. The Bank’s Short-Term Issuer Rating is confirmed at R-1 (high). The trend on all ratings is now Stable.
TD’s Long-Term Issuer Rating is composed of an Intrinsic Assessment (IA) of AA and a Support Assessment (SA) of SA2, which reflects the expectation of timely systemic support from the Government of Canada (rated AAA with a Stable trend by DBRS). The SA2 designation results in a one-notch uplift to the Long-Term Issuer Rating. Under the new Canadian Bank Recapitalization Regime, DBRS expects to eventually remove the uplift from systemic support once the Bank has issued a sufficient level of bail-inable senior debt, which would thereby provide an adequate buffer for non-bail-inable obligations and is then expected to offset the removal of systemic support.
Important Note: NVCC preferred shares have a lower credit rating than other TD Bank preferred share issues. DBRS assigned the NVCC Preferred Shares Series 1 a rating equal to the Bank’s intrinsic assessment less four rating notches because the Series 1 has only an Office of the Superintendent of Financial Institutions (OSFI)-compliant non-viable contingent capital (NVCC) trigger, which is consistent with the OSFI requirements for NVCC instruments, and no additional triggers.
**NVCC is short for Non-Viability Contingent Capital and it refers to the issuer's ability to convert the preferred shares into common shares if a "Trigger Event" occurs. See "Convertible by Company" section below for the definition of a trigger event.
See Dominion Bond Ratings for additional information about NVCC shares.
- DBRS Rating
- Pfd-2 (high) Stable Trend
- DBRS Rating Date
- Shares Issued
- Issued Date
- Shares O/S
- O/S Date
- $0.975 per share per year
- Dividend Dates
- On the last day of January, April, July and October
- Dividend Details
- The dividend rate will be reset on October 31, 2019 and on October 31st every five years thereafter. The annual dividend rate will be reset to equal the sum of the Government of Canada Yield (GCAN5YR) plus 2.24%.
- Redeemable at the issuer's option on October 31, 2019 and on October 31st every five years thereafter at $25.00 per share.
- Convertible at the holder's option into Series 2 Floating-Rate preferred shares on October 31, 2019 and on October 31st every five years thereafter. The Floating Rate preferred share will calculate and pay a quarterly dividend equal to the sum of the Government of Canada 3-month Treasury Bill Rate plus 2.24%.
- Lead Underwriter(s)
- TD Securities Inc., RBC Dominion Securities, BMO Nesbitt Burns
- Transfer Agent
- CIBC Mellon Trust Company
- CIBC Mellon Trust Company
- Dividend Reinvestment Plan
- Not available to preferred shareholders.
- Convertible by Company
- Yes. If a "Trigger Event" were to occur, the shares can be converted into common shares of the company. see the prospectus for more detail.
- Last Updated