TD Bank issues of AT1 limited recourse capital notes

On October 17, 2022, The Toronto-Dominion Bank ("TD") closed its previously announced offering of US$1.75 billion of 8.125% fixed rate reset limited recourse capital notes (“LCRN”), Series 3 (non-viability contingent capital (NVCC)). Payable quarterly, for the initial period ending on, but excluding, October 31, 2027. Thereafter, the interest rate will reset every five years at a rate equal to the prevailing U.S. Treasury Rate plus 4.07%. The LRCNs will mature on October 31, 2082.

Concurrent with the issuance of the notes, the bank also issued 1,750,000 non-cumulative 5-year fixed rate reset first preferred shares Series 30 (non-viability contingent capital (NVCC)) to be held by Computershare Trust Company of Canada as trustee for TD LRCN Limited Recourse Trust™. In case of non-payment of interest on or principal of the notes when due, the recourse of each note holder will be limited to that holder's proportionate share of the limited recourse trust's assets in respect of the notes, which will consist of Series 30 preferred shares except in limited circumstances.

Net proceeds from this transaction will be used for general banking purposes.

Further information can be found on Canada Newswire’s website.

Together with its subsidiaries, TD is the sixth largest bank in North America by assets, with C$1.8 trillion in assets on April 30, 2021, and serves over 27 million customers.