Underwriters have agreed to purchase an additional 3 million Toronto-Dominion Bank preferred shares, the bank said Friday.

The purchase brings the total issue, which was announced on Jan. 22, to 15 million shares and gross proceeds raised under the offering to $375 million.

The non-cumulative 5-Year Rate Reset Class A Preferred Shares, Series AG carry a face value of $25 a share

The Series AG Shares will yield 6.25% annually, payable quarterly, as and when declared by the board of directors of TD, for the initial period ending April 30, 2014. Thereafter, the dividend rate will reset every five years at a level of 438 basis points over the then five-year Government of Canada bond yield.

Holders of the Series AG Shares will have the right to convert their shares into non-cumulative Floating Rate Class A Preferred Shares, Series AH, subject to certain conditions, on April 30, 2014, and on April 30th every five years thereafter. Holders of the Series AH Shares will be entitled to receive quarterly floating dividends, as and when declared by the TD board of directors, equal to the three-month Government of Canada Treasury bill yield plus 438 basis points.

The issues is expected to close Jan. 30.

IE