TD Bank announces pricing of offering of Charles Schwab stock

TD Bank Group (TD) announced that, further to its news release on February 10, it has agreed to sell its entire equity investment in The Charles Schwab Corporation (SCHW). TD currently holds 184,678,738 shares of Schwab’s common stock representing 10.1% economic ownership. The Bank will sell 165,443,530 shares through a registered offering at a price of $79.25 per share. Schwab will purchase 19,235,208 shares from the Bank for a total purchase price of $1.5B. The sale is expected to close on February 12, subject to customary closing conditions. The transaction will generate net proceeds of approximately C$20B after taxes and underwriting discount with C$15B in CET1 capital created or 247 bps of CET1 capital released. TD intends to deploy C$8B toward a share buyback program, subject to regulatory approval. Additional details on the Bank’s normal course issuer bid are available in a separate news release issued on February 10. Net of the share buyback program, this transaction will create approximately 116 bps of CET1 capital. The remainder of the proceeds will be invested in the Bank’s businesses to further support our customers, drive performance and accelerate organic growth. The transaction is expected to be accretive to TD’s earnings per share on a run-rate basis.