TD Bank 2014 Annual Report Download - page 184

TD BANK GROUP ANNUAL REPORT 2014 FINANCIAL RESULTS182
REPAYMENT SCHEDULE
The aggregate remaining maturities of the Bank’s subordinated notes
and debentures are as follows:
Maturities
(millions of Canadian dollars) As at
October 31 October 31
2014 2013
Within 1 year $ – $ 149
Over 1 year to 3 years – –
Over 3 years to 4 years – –
Over 4 years to 5 years – –
Over 5 years 7,785 7,833
Total $ 7,785 $ 7,982
CAPITAL TRUST SECURITIES
NOTE 20
The Bank issues innovative capital securities through two structured
entities: TD Capital Trust III (Trust III) and TD Capital Trust IV (Trust IV).
TD CAPITAL TRUST III SECURITIES – SERIES 2008
On September 17, 2008, Trust III, a closed-end trust, issued TD Capital
Trust III Securities – Series 2008 (TD CaTS III). The proceeds from the
issuance were invested in trust assets purchased from the Bank. Each
TD CaTS III may be automatically exchanged, without the consent of
the holders, into 40 non-cumulative Class A First Preferred Shares,
Series A9 of the Bank on the occurrence of certain events. TD CaTS III
are reported on the Consolidated Balance Sheet as Non controlling
interests in subsidiaries because the Bank consolidates Trust III.
TD CAPITAL TRUST IV NOTES – SERIES 1 TO 3
On January 26, 2009, Trust IV issued TD Capital Trust IV Notes – Series
1 due June 30, 2108 (TD CaTS IV − 1) and TD Capital Trust IV Notes –
Series 2 due June 30, 2108 (TD CaTS IV − 2) and on September 15,
2009, issued TD Capital Trust IV Notes – Series 3 due June 30, 2108
(TD CaTS IV − 3, and collectively TD CaTS IV Notes). The proceeds from
the issuances were invested in bank deposit notes. Each TD CaTS IV − 1
and TD CaTS IV − 2 may be automatically exchanged into non-cumula-
tive Class A First Preferred Shares, Series A10 of the Bank and each
TD CaTS IV − 3 may be automatically exchanged into non-cumulative
Class A First Preferred Shares, Series A11 of the Bank, in each case,
without the consent of the holders, on the occurrence of certain
events. On each interest payment date in respect of which certain
events have occurred, holders of TD CaTS IV Notes will be required
to invest interest paid on such TD CaTS IV Notes in a new series of
non-cumulative Class A First Preferred Shares of the Bank. The Bank
does not consolidate Trust IV because it does not absorb significant
returns of Trust IV as it is ultimately exposed only to its own credit
risk. Therefore, TD CaTS IV Notes are not reported on the Bank’s
Consolidated Balance Sheet but the deposit notes issued to Trust IV
are reported in Deposits on the Consolidated Balance Sheet. Refer
to Notes 10 and 17 for further details.
Capital Trust Securities
(millions of Canadian dollars, except as noted) As at
Redemption
date
Thousands Distribution/Interest Annual At the option October 31 October 31
of units payment dates yield of the issuer 2014 2013
Included in Non-controlling interests in subsidiaries
on the Consolidated Balance Sheet
TD Capital Trust III Securities – Series 2008 1,000 June 30, Dec. 31 7.243%1 Dec. 31, 20132 $ 993 $ 993
TD CaTS IV Notes issued by Trust IV
TD Capital Trust IV Notes – Series 1 550 June 30, Dec. 31 9.523%3 June 30, 20144 550 550
TD Capital Trust IV Notes – Series 2 450 June 30, Dec. 31 10.000%5 June 30, 20144 450 450
TD Capital Trust IV Notes – Series 3 750 June 30, Dec. 31 6.631%6 Dec. 31, 20144 750 750
1,750 $ 1,750 $ 1,750
1
From and including September 17, 2008, to but excluding December 31, 2018,
and thereafter at a rate of one half of the sum of 6-month Bankers’ Acceptance
rate plus 4.30%.
2
On the redemption date and on any distribution date thereafter, Trust III may,
with regulatory approval, redeem TD CaTS III in whole, without the consent of
the holders.
3
From and including January 26, 2009, to but excluding June 30, 2019. Starting
on June 30, 2019, and on every fifth anniversary thereafter, the interest rate will
reset to equal the then 5 year Government of Canada yield plus 10.125%.
4
On or after the redemption date, Trust IV may, with regulatory approval, redeem
the TD CaTS IV – 1, TD CaTS IV – 2 or TD CaTS IV – 3, respectively, in whole or in
part, without the consent of the holders. Due to the phase-out of non-qualifying
instruments under OSFI’s CAR Guideline, the Bank expects to exercise a regulatory
event redemption right in 2022 in respect of the TD CaTS IV – 2 outstanding at
that time.
5
From and including January 26, 2009, to but excluding June 30, 2039. Starting on
June 30, 2039, and on every fifth anniversary thereafter, the interest rate will reset
to equal the then 5 year Government of Canada yield plus 9.735%.
6
From and including September 15, 2009, to but excluding June 30, 2021. Starting
on June 30, 2021, and on every fifth anniversary thereafter, the interest rate will
reset to equal the then 5 year Government of Canada yield plus 4.0%.