Toronto-Dominion Bank announced a domestic public offering of noncumulative five-year rate reset preferred shares, series 20, for gross proceeds of C$250 million.
The company plans to issue, on a bought deal basis, 10 million series 20 shares for C$25 per share, through a group of underwriters led by TD Securities Inc. The company also granted the underwriters an option to buy up to an additional 2 million series 20 shares, on the same terms.
The shares will yield 4.75% annually, with quarterly dividends, over the period ending Oct. 31, 2023. After that, every five years, the dividend rate will reset at 2.59% over the then-five-year Government of Canada bond yield.
Toronto-Dominion, subject to regulatory approval, has the option to redeem all or part of the shares on Oct. 31, 2023, and on Oct. 31 every five years thereafter, at C$25 per share.
The company expects to close the transaction Sept. 13 and to use the net proceeds for general corporate purposes.
Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group.