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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: 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 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 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