CIBC to Issue Preferred Shares

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

TORONTO, June 2, 2014 /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 39 (the "Series 39 Shares") priced at $25.00 per Series 39 Share to raise gross proceeds of $250 million.

CIBC has granted the underwriters an option to purchase up to an additional 2 million Series 39 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 39 Shares will yield 3.90% per annum, payable quarterly, as and when declared by the Board of Directors of CIBC, for an initial period ending July 31, 2019.  On July 31, 2019, 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 2.32%.

Subject to regulatory approval and certain provisions of the Series 39 Shares, on July 31, 2019, and on July 31 every five years thereafter, CIBC may, at its option, redeem all or any part of the then outstanding Series 39 Shares at par.

Subject to the right of redemption, holders of the Series 39 Shares will have the right to convert their shares into non-cumulative Floating Rate Class A Preferred Shares, Series 40 (the "Series 40 Shares"), subject to certain conditions, on July 31, 2019 and on July 31 every five years thereafter.  Holders of the Series 40 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 2.32%.

Holders of the Series 40 Shares may convert their Series 40 Shares into Series 39 Shares, subject to certain conditions, on July 31, 2024 and on July 31 every five years thereafter.

The expected closing date is June 11, 2014.  CIBC will make an application to list the Series 39 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

For further information:

Investor Relations:
Alice Dunning  416-861-8870  alice.dunning@cibc.com
Jason Patchett  416-980-8691  jason.patchett@cibc.com

Investor & Financial Communications
Erica Belling   416-594-7251  erica.belling@cibc.com


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