TD raises a BILLION @ 9.523% | I meant to post this when I read it on Jan 16th .................. here it is now:
TD issues $1-billion in debt to boost Tier 1 capital
Friday, January 16, 2009 | |
Toronto-Dominion Bank is issuing $1-billion of long-term debt notes - maturing almost a century from now but redeemable after mid-2014 - to bulk up its Tier 1 capital. The bank said yesterday that $550-million of the notes maturing in 2108 will pay 9.523 per cent annual interest until June 30, 2019, with the rate then reset every five years. The other series of $450-million in notes will pay 10 per cent interest until mid-2039, resetting every five years thereafter. The 99-year term to maturity is required for the notes to qualify as core Tier 1 capital, a key measure of banking solidity. TD (TSX) rose 5 cents to $44.05.
What the uck is going on with this ? The bank prime rate is 3%!!!! Looks to me the banks are hiding some bad news, otherwise why pay such an out of the market rate?
The message I get is ..........................................GOT GOLD??