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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: June 27, 2018 - DBRS changed the trends on all long-term ratings of The Toronto-Dominion Bank and its related entities to Positive from Stable. DBRS also confirmed all the ratings of TD, including its Long-Term Issuer Rating of AA and Short-Term Issuer Rating of R-1 (high). The short-term ratings of the Bank remain Stable. TD’s Intrinsic Assessment (IA) and Support Assessment continue to be AA (low) and SA2, respectively, reflecting the expectation of timely, systemic support from the Government of Canada (rated AAA with a Stable trend by DBRS). The SA2 designation results in one notch of uplift from the IA to the Long-Term Issuer Rating. However, following the finalization of the Canadian Bank Recapitalization Regime, DBRS eventually expects to remove the uplift from systemic support. This will be actioned once a sufficient level of bail-inable senior debt is issued, thereby providing an adequate buffer for non-bail-inable obligations, which 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 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