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Preferred Share Description
Toronto-Dominion Bank (TD.PF.C)
3.75% Non-Cumulative, Rate-Reset, NVCC** Preferred Shares, Series 5
Prospectus - December 9, 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 5 a rating equal to the Bank’s intrinsic assessment less four rating notches because the Series 5 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
- $0.9375 per share per year
- Dividend Dates
- Last day of January, April, July and October
- Dividend Details
- The initial dividend is set at a fixed annual rate of 3.75% until January 31, 2020. On January 31, 2020 and on January 31st every 5 years thereafter the dividend rate will be reset and equal to the sum of the Government of Canada Yield (GCAN5YR) plus 2.25%.
- The shares are not redeemable prior to January 31, 2020. On January 31, 2020 and on January 31st every 5 years thereafter the shares are redeemable by the company at $25.00 per shares.
- On January 31, 2020 and on January 31st every 5 years thereafter holders of the Series 5 shares will have the right to convert a portion or all of their shares into an equal number of Series 6 Floating-Rate preferred shares. The Series 6 shares will calculate and pay a dividend quarterly equal to the sum of the 3-month Government of Canada Treasury Bill rate plus 2.25%. On January 31, 2025 and on January 31st every 5 years thereafter, holders of the Series 6 Floating-Rate shares will have the right to convert their shares into an equal number of Series 5 Rate-Reset preferred shares.
- 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