06:09 AM EDT, 09/04/2024 (MT Newswires) -- The Toronto-Dominion Bank ( MLWIQXX ) overnight Tuesday announced the pricing of a U.S. public offering of US$1 billion of 5.146% Non-Viability Contingent Capital Subordinated Notes due 2034, which will constitute subordinated indebtedness of TD. The Notes are registered with the U.S. Securities and Exchange Commission.

A statement noted the Notes will bear interest at a fixed rate of 5.146% per annum (paid semi-annually) to, but excluding, September 10, 2029. On and after the Reset Date, to, but excluding September 10, 2034 , interest on the Notes will reset at an interest rate per annum equal to the sum (paid semi-annually), as determined by TD or its designee, of the prevailing U.S. Treasury Rate plus 1.500%. The Notes will mature on September 10, 2034. The expected closing date of the offering is September 10, 2024, subject to customary closing conditions.

TD may, at its option, with the prior written approval of the Superintendent of Financial Institutions (Canada), redeem the Notes on September 10, 2029, in whole at par plus accrued and unpaid interest on not more than 60 nor less than 10 days' notice to holders.

According to the statement, the net proceeds from this transaction will be used for general corporate purposes, which may include the redemption of outstanding capital securities and/or the repayment of other outstanding liabilities. The Notes are expected to qualify as Tier 2 capital of TD for regulatory purposes.