TD Bank 2007 Annual Report Download - page 99

TD BANK FINANCIAL GROUP ANNUAL REPORT 2007 Financial Results 95
NOTE 11 SUBORDINATED NOTES, DEBENTURES AND NON-CONTROLLING INTERESTS
Subordinated notes and debentures are direct unsecured obliga-
tions of the Bank or its subsidiaries and are subordinated in right
of payment to the claims of depositors and certain other credi-
tors. Redemptions, cancellations, exchanges and modifications
of subordinated debentures qualifying as regulatory capital are
subject to the consent and approval of the Superintendent
of Financial Institutions Canada.
Interest expense is recognized on the accrual basis using
the effective interest rate method.
Subordinated Notes and Debentures
(millions of Canadian dollars)
Maturity date Interest rate (%)Earliest par redemption date Foreign currency amount 2007 2006
December 2007 – August 2009 Various
1–$5$ 6
June 201127.63% – US$ 207 million 206 224
May 201227.00% – US$ 217 million 216 247
July 2012 6.55% July 2007 –497
September 2012 5.20% September 2007 –550
September 2013 4.54% September 2008 1,000 1,000
August 2014 10.05% –149 149
January 201634.32% January 2011 1,000 1,000
October 201644.87% October 2011 500 500
June 2018 5.69% June 2013 898 897
September 202224.64% September 2017 270 270
May 2025 9.15% –196 196
February 202728.98% February 2007 –55
February 202729.06% February 2007 –75
May 2027210.52% May 2007 –32
June 202827.65% June 2008 US$ 54 million 54 61
July 2030211.30% July 2010 US$ 11 million 11 14
October 2030210.88% October 2010 US$ 24 million 24 31
February 2031210.20% February 2011 US$ 4 million 45
July 203128.94% January 2007 –6
April 203228.00% April 2007 –230
April 203326.85% April 2008 US$ 21 million 21 23
April 203326.45% April 2008 US$ 16 million 15 18
March 203428.48% March 2009 US$ 21 million 21 24
June 203526.12% September 2010 US$ 10 million 10 –
June 203526.08% September 2010 US$ 10 million 10 –
October 210454.97% October 2015 794 790
December 210564.78% December 2016 2,245 –
December 210675.76% December 2017 1,800 –
$ 9,449 $ 6,900
1 Interest is payable at various rates, from 0% to 0.125%.
2 Obligation of a subsidiary.
3 On January 16, 2006, the Bank issued $1 billion 4.317% medium term
notes due January 18, 2016.
4 On April 28, 2006, the Bank issued $500 million 4.87% medium term notes
due October 28, 2016.
5 On November 1, 2005, the Bank issued $800 million 4.97% medium term
notes due October 30, 2104.
6 On December 14, 2006, the Bank issued $2.25 billion 4.779% medium
term notes due on December 14, 2105.
7 On July 20, 2007, the Bank issued $1.8 billion 5.763% medium term notes
due on December 18, 2106.
REPAYMENT SCHEDULE
The aggregate maturities of the Bank’s subordinated notes and
debentures are as follows:
(millions of Canadian dollars) 2007 2006
Within 1 year $ 1 $ 1
Over 1 to 2 years 41
Over 3 to 4 years 206 4
Over 4 to 5 years 216 224
Over 5 years 9,022 6,670
Total $ 9,449 $ 6,900
Non-controlling Interests
On May 17, 2007, a subsidiary of TD Banknorth issued 500,000
non-cumulative REIT preferred stock, Series A for gross cash
consideration of US$500 million. The Series A shares pay an
annual non-cumulative dividend of 6.378%. The Series A shares
are redeemable, in whole or in part, at par on October 15, 2017
and every five years thereafter and qualify as Tier 1 regulatory
capital of the Bank.
Non-controlling interests for 2006 primarily related to
TD Banknorth.
NOTE 12 LIABILITIES FOR PREFERRED SHARES AND CAPITAL TRUST SECURITIES
As required by Section 3861, Financial Instruments – Disclosure
and Presentation, the Bank classifies preferred shares and
capital trust securities, convertible into a variable number of
the Bank’s common shares at the holder’s option, as liabilities
for reporting purposes.
Preferred shares without conversion rights are not classified
as liabilities and are presented in Note 13. TD Capital Trust II
Securities – Series 2012-1 are not consolidated at the Bank level
but are described further below.