TD Bank 2001 Annual Report Download - page 55

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FINANCIAL RESULTS
Repayment schedule
The aggregate maturities of the Bank’s subordinated notes
and debentures are as follows:
(millions of dollars) 2001 2000
Within 1 year $ 267 $22
Over 1 to 2 years 232 255
Over 2 to 3 years 150 332
Over 3 to 5 years –150
Over 5 years 4,243 4,124
$ 4,892 $ 4,883
(millions of dollars) 2001 2000
Preferred shares issued by Canada Trustco Mortgage Company
6,000,000 Non-cumulative Redeemable
Third Preference Shares, Series 1 $–$ 150
Preferred shares issued by CT Financial Services Inc.
6,000,000 Non-cumulative Redeemable
First Preference Shares, Series 4 –150
2,000,000 Non-cumulative Redeemable
First Preference Shares, Series 5 (US$50 million) –75
Trust units issued by TD Capital Trust
900,000 Capital Trust Securities – Series 2009 900 900
Common shares and retained earnings of TD Waterhouse Group, Inc. 372 381
$ 1,272 $ 1,656
Canada Trustco Mortgage Company
Third Preference Shares, Series 1
On December 31, 2000, Canada Trustco Mortgage Company
exercised its option to redeem the outstanding Series 1 shares for
$25.00 per share together with declared and unpaid dividends to
the date of redemption.
CT Financial Services Inc.
First Preference Shares, Series 4
On December 12, 2000, the Bank exchanged the Series 4
shares for Bank preferred shares, Series K, with substantially
the same terms.
CT Financial Services Inc.
First Preference Shares, Series 5
On December 12, 2000, the Bank exchanged the Series 5
shares for Bank preferred shares, Series L, with substantially
the same terms.
TD Capital Trust Securities – Series 2009
The TD Capital Trust Securities (TD CaTS) are issued by
TD Capital Trust, whose voting securities are owned 100% by
the Bank. Trust assets may include residential mortgages,
co-ownership interests in one or more pools of residential mort-
gages, mortgage-backed securities and other eligible investments.
Holders of TD CaTS are eligible to receive semi-annual non-
cumulative fixed cash distributions of $38 per TD CaTS. Should
the trust fail to pay the semi-annual distributions in full, the
Bank’s ability to declare dividends on Bank common and pre-
ferred shares will be restricted.
Between June 30, 2005 and December 31, 2009, the trust
has the option of redeeming the outstanding TD CaTS for the
greater of: (a) $1,000 together with unpaid distributions to
the date of redemption and (b) a price calculated to provide an
annual yield equal to the yield of a Government of Canada bond
maturing on December 31, 2009 at that time plus .375%
together with unpaid distributions to the date of redemption. In
the event of an unfavorable change in tax or capital treatment as
it applies to the trust prior to June 30, 2005, the trust may
redeem the outstanding TD CaTS for a redemption price as calcu-
lated above. After December 31, 2009, the redemption price
would be $1,000 together with unpaid distributions to the date
of redemption. Such redemption rights are subject to the
approval of the Superintendent of Financial Institutions Canada.
On or after June 30, 2010, each TD CaTS may, at the option
of the holder, be converted semi-annually into one Non-cumula-
tive Class A Redeemable First Preferred Share of the Bank.
By giving at least 60 days of notice prior to the date of conver-
sion to all holders who have given a conversion notice, the Bank
may redeem or find substitute purchasers at the purchase price
of $1,000 per TD CaTS together with unpaid distributions to the
date of conversion.
Each TD CaTS may be automatically exchanged into one
preferred share of the Bank without consent of the holder in the
following circumstances: (a) proceedings are commenced for
the winding-up of the Bank; (b) the Superintendent of Financial
Institutions Canada takes control of the Bank; (c) the Bank has
Tier 1 capitalization of less than 5% or a total capital ratio of
less than 8%; or (d) the Bank has failed to comply with a direc-
tion of the Superintendent of Financial Institutions Canada to
increase its capital or provide additional liquidity.
The distribution rate on the trust securities is 7.6% per annum.
NOTE 8 Non-controlling interest in subsidiaries