TORONTO, Oct. 29,
2024 /CNW/ - CIBC (TSX: CM) (NYSE: CM) today
announced the public offering in the
United States of US$500
million of 6.950% Fixed Rate Reset Limited Recourse
Capital Notes Series 5 (Non-Viability Contingent Capital (NVCC))
(Subordinated Indebtedness) (the "LRCNs").
The LRCNs will bear interest at a rate
of 6.950% annually, payable quarterly, for the initial
period ending on, but excluding, January 28, 2030. Thereafter,
the interest rate on the LRCNs will reset every five years at a
rate equal to the prevailing 5-year U.S. Treasury Rate
plus 2.833%. The LRCNs will mature on January 28,
2085. The expected closing date of the offering is November 5,
2024.
In connection with the issuance of the LRCNs, CIBC will issue
Non-Cumulative 5-Year Fixed Rate Reset Class A Preferred Shares
Series 59 (Non-Viability Contingent Capital (NVCC)) (the "Series 59
Shares") to be held by Computershare Trust Company
of Canada as trustee of CIBC LRCN Limited Recourse Trust
(the "Limited Recourse Trust"). In case of non-payment of interest
on or principal of the LRCNs when due, the recourse of each LRCN
holder will be limited to that holder's proportionate share of the
Limited Recourse Trust's assets held in respect of the LRCNs, which
will consist of Series 59 Shares except in limited
circumstances.
CIBC may redeem the LRCNs on January
28, 2030 and on each January
28, April 28, July 28 and October
28 thereafter with the prior written approval of the
Superintendent of Financial Institutions (Canada), in whole or in part on not less than
10 days' nor more than 60 days' prior notice.
The net proceeds to CIBC from the sale of the LRCNs will be used
for general corporate purposes, which may include the redemption of
outstanding capital securities of CIBC, and/or the repayment of
other outstanding liabilities of CIBC.
The joint book-running managers for the offering are CIBC World
Markets Corp., BNP Paribas Securities Corp., BofA Securities, Inc.,
Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC.
A registration statement relating to the offering has been filed
with the U.S. Securities and Exchange Commission (the "SEC") and is
effective. The offering is being made only by means of a prospectus
supplement and a base prospectus. Copies of the prospectus
supplement and the base prospectus for the offering may be obtained
free of charge by visiting EDGAR on the SEC's website at
www.sec.gov. Alternatively, the prospectus supplement and
accompanying base prospectus may be obtained by calling CIBC World
Markets Corp. toll-free at (800) 282-0822; BofA Securities, Inc.
toll-free at (800) 294-1322; BNP Paribas Securities Corp. toll-free
at (800) 854-5674; Citigroup Global Markets Inc. toll-free at (800)
831-9146; HSBC Securities (USA)
Inc. toll-free at (866) 811-8049; or J.P. Morgan Securities LLC at
(212) 834-4533.
This press release is for informational purposes only and does
not constitute an offer to sell or the solicitation of an offer to
buy any of these securities, nor will there be any offer,
solicitation or sale of these securities, in any state or
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction.
About CIBC
CIBC is a leading North American financial institution with 14
million personal banking, business, public sector and institutional
clients. Across Personal and Business Banking, Commercial Banking
and Wealth Management, and Capital Markets, CIBC offers a full
range of advice, solutions and services through its leading digital
banking network, and locations across Canada, in the
United States and around the world. Ongoing news releases and
more information about CIBC can be found
at www.cibc.com/ca/media-centre.
SOURCE CIBC - Investor Relations