TD Bank Prices C$1.25 Billion in AT1 Limited Recourse Capital Notes
TD sits 64% above its 52-week low of $69.56.
Summary
The Toronto-Dominion Bank announced the pricing of a C$1.25 billion offering of Additional Tier 1 Limited Recourse Capital Notes, enhancing its regulatory capital.
Key Events · Financing and Capital Events · TD
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Pricing of AT1 Notes
TD priced C$1.25 billion of 5.918% Non-Viability Contingent Capital (NVCC) Additional Tier 1 (AT1) Limited Recourse Capital Notes Series 7.
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Maturity and Interest Rate
The notes mature on July 31, 2086, and will bear interest at 5.918% annually, payable quarterly, for the initial period ending July 31, 2031. The rate will reset every five years thereafter.
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Use of Proceeds
The net proceeds from this transaction will be used for general corporate purposes.
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Regulatory Capital Enhancement
This issuance contributes to the bank's regulatory capital structure, specifically as Additional Tier 1 capital.
Analysis · TD · Finance
This offering of Additional Tier 1 (AT1) notes strengthens TD's regulatory capital position and provides funds for general corporate purposes. For a major financial institution, this is a routine but substantial capital markets activity to manage its balance sheet and meet regulatory requirements.
At the time of this filing, TD was trading at $114.00 on NYSE in the Finance sector, with a market capitalization of approximately $192.2B. The 52-week trading range was $69.56 to $114.56. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.