Making a difference together? Please. TD Bank was nowhere in the income trust marketplace, since TD is no where in the retail brokerage industry in Canada. It was for this self serving reason that TD Bank applauded Flaherty's move to kill income trusts, because it resolves a deficiency in the TD Bank's business. Flaherty killed income trusts on the premise that distributions paid to unitholders on income trusts are paid from pretax cash flows. So how is this $1 billion issue by TD Capital Trust IV any different?
TD plans notes issues to raise $1 billion
January 15, 2009
By Megan Harman
TD Capital Trust IV, a subsidiary of the Toronto-Dominion Bank, is issuing two different series of notes to raise $1 billion, the bank announced on Thursday.
TD Bank and TD Capital Trust IV entered into an agreement with a syndicate of underwriters led by TD Securities Inc. for the issue, which is expected to close Jan. 26.
The issue will include $550 million of TD Capital Trust IV series 1 notes due June 30, 2108, and $450 million of TD Capital Trust IV series 2 notes, due June 30, 2108
The bank intends to file a final prospectus for the offering with the securities regulators in each of the provinces and territories of Canada.
TD Bank anticipates the notes will qualify as tier 1 capital, with any capital over the 15% regulatory limit to be temporarily counted as tier 2B capital.
Interest on the series 1 notes will be payable semi-annually at a rate of 9.523% per year. Starting on June 30, 2019, and on every fifth anniversary thereafter until June 30, 2104, the interest rate will reset.
Interest on the series 2 will be payable semi-annually at a rate of 10.00% per year. Starting on June 30, 2039, and on every fifth anniversary thereafter until June 30, 2104, the interest rate will reset.
The notes are redeemable by the trust on or after June 30, 2014, in whole or in part.
TD Bank noted that in certain circumstances, the notes or interest may be automatically exchanged or paid by the issuance of non-cumulative Class A first preferred shares of the bank.
The notes will not be listed on any stock exchange.
Thursday, January 15, 2009
TD Issues $1 billion of equity that is tax deductible......tell me this isn't an income trust or tax leakage?
Posted by Fillibluster at 2:30 PM