TD Bank 2005 Annual Report Download - page 113

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TD BANK FINANCIAL GROUP ANNUAL REPORT 2005 Financial Results 109
SUBSEQUENT EVENTS
NOTE 28
ISSUANCE OF PREFERRED SHARES
On November 1, 2005, the Bank issued 17 million non-cumula-
tive Class A First Preferred Shares, Series O carrying a face value
of $25.00 per share to raise gross proceeds of $425 million. The
Series O Shares will yield 4.85% annually and are redeemable by
the Bank for cash, subject to regulatory consent, at a declining
premium after approximately five years.
REDEMPTION OF SUBORDINATED DEBENTURES
On October 27, 2005, the Bank announced its intention to
redeem on December 1, 2005 all $150 million, 8.4% December
1, 2010 subordinated debentures issued through its New York
branch. The redemption price will be 100% of the principal
amount, payable upon presentation and surrender of the
debentures to Computershare Trust Company of Canada.
ISSUANCE OF SUBORDINATED DEBENTURES
On November 1, 2005 the Bank issued $800 million of reset
medium term subordinated notes maturing on October 30, 2104
redeemable at par on October 30, 2015 and automatically
convertible into preferred shares of the Bank under certain
circumstances. The Bank will pay a coupon rate of 4.97% until
October 30, 2015, and if not redeemed, the coupon will be
reset every 5 years to the Government of Canada yield plus
1.77% thereafter until maturity.
was amended so that new grants of options and all outstanding
options can only be settled for shares. As a result, for the purpos-
es of U.S. GAAP the accrued liability for stock options of $39 mil-
lion after-tax was reclassified to capital as at October 6, 2002.
Beginning in fiscal 2003, the Bank has expensed stock option
awards for both Canadian and U.S. GAAP purposes using the fair
value method of accounting for stock options. There is no contin-
uing Canadian and U.S. GAAP difference as the Bank has entirely
reversed the accrued liability reclassified to capital for exercises
and forfeitures of stock options that existed at October 6, 2002.
(k) FOREIGN CURRENCY TRANSLATION ADJUSTMENTS
U.S. GAAP requires foreign currency translation adjustments
arising from subsidiaries where the functional currency is other
than the Canadian dollar to be presented net of taxes in other
comprehensive income. Under Canadian GAAP, the Bank
presents foreign currency translation adjustments as a separate
component of shareholders’ equity.