(August 8 – 11:10 ET) – TD Bank has filed a preliminary prospectus for TD Split Inc.
Each TD Split unit consists of one capital share and one preferred share. The offering gives investors the chance to either participate fully in TD’s capital appreciation or its dividends. Any outstanding capital shares will be redeemed by 2005 for TD Bank shares. The offering will raise an undetermined amount.
TD Securities will be paid 15 basis points annually for managing the product, and it will receive institutional trading commissions for trading TD shares in connection with this new issue.
A number of these split share products have been introduced over the last few years, generally targeting a broad selection of stocks, such as the telecom business, or the TSE 300. However, last year Royal Bank launched its own split shares, and BCE has done so, too.
-IE Staff