NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES
TORONTO, Feb. 26, 2015 /CNW/ - CIBC (TSX: CM)
(NYSE: CM) today announced that it had entered into an agreement
with a group of underwriters led by CIBC World Markets Inc. for an
issue of 10 million Basel III-compliant Non-cumulative Rate Reset
Class A Preferred Shares, Series 43 (the "Series 43 Shares") priced
at $25.00 per Series 43 Share to
raise gross proceeds of $250
million.
CIBC has granted the underwriters an option to purchase up to an
additional two million Series 43 Shares at the same offering price,
exercisable at any time up to two days prior to closing.
Should the underwriters' option be fully exercised, the total gross
proceeds of the financing will be $300
million.
The Series 43 Shares will yield 3.60% per annum, payable
quarterly, as and when declared by the Board of Directors of CIBC,
for an initial period ending July 31,
2020. On July 31, 2020,
and on July 31 every five years
thereafter, the dividend rate will reset to be equal to the then
current five-year Government of Canada bond yield plus 2.79%.
Subject to regulatory approval and certain provisions of the
Series 43 Shares, on July 31, 2020
and on July 31 every five years
thereafter, CIBC may, at its option, redeem all or any part of the
then outstanding Series 43 Shares at par.
Subject to the right of redemption, holders of the Series 43
Shares will have the right to convert their shares into
Non-cumulative Floating Rate Class A Preferred Shares, Series 44
(the "Series 44 Shares"), subject to certain conditions, on
July 31, 2020 and on July 31 every five years thereafter.
Holders of the Series 44 Shares will be entitled to receive a
quarterly floating rate dividend, as and when declared by the Board
of Directors of CIBC, equal to the three-month Government of Canada
Treasury Bill yield plus 2.79%.
Holders of the Series 44 Shares may convert their Series 44
Shares into Series 43 Shares, subject to certain conditions, on
July 31, 2025 and on July 31 every five years thereafter.
The expected closing date is March 11,
2015. CIBC will make an application to list the Series
43 Shares as of the closing date on the Toronto Stock
Exchange. The net proceeds of this offering will be used for
general purposes of CIBC.
The securities being offered have not been and will not be
registered under the U.S. Securities Act of 1933, as
amended, and may not be offered or sold in the United States absent registration or an
applicable exemption from the registration requirements. This
press release shall not constitute an offer to sell or an
invitation to purchase or subscribe for any securities in
the United States or in any other
jurisdiction where such offer is unlawful.
About CIBC
CIBC is a leading Canadian-based global financial institution
with nearly 11 million personal banking and business clients.
Through our three major business units - Retail and Business
Banking, Wealth Management and Wholesale Banking - CIBC offers a
full range of products and services through its comprehensive
electronic banking network, branches and offices across
Canada with offices in
the United States and around the
world. You can find other news releases and information about CIBC
in our Media Centre on our corporate website at www.cibc.com.
SOURCE CIBC - Investor Relations