TORONTO, June 3 /CNW/ - CIBC (CM: TSX; NYSE) announced today it intends
to issue a total of $1.15 billion of medium term notes constituting
subordinated indebtedness pursuant to its medium term note program established
by a prospectus supplement to its Canadian base shelf prospectus. The medium
term notes will be issued in Canada in two tranches, one with a ten-year final
maturity and the other with a fifteen-year final maturity, and sold through a
dealer syndicate led by CIBC World Markets Inc.
CIBC expects to issue the notes on June 6, 2008. The ten-year notes will
bear interest at a fixed rate of 5.15% per annum (paid semi-annually) until
June 6, 2013, and, if not redeemed by CIBC, at the three-month bankers'
acceptance rate plus 2.30% per annum (paid quarterly) thereafter until
maturity on June 6, 2018. The fifteen-year notes will bear interest at a fixed
rate of 6.00% per annum (paid semi-annually) until June 6, 2018, and, if not
redeemed by CIBC, at the three-month bankers' acceptance rate plus 2.50% per
annum (paid quarterly) thereafter until maturity on June 6, 2023.
For both tranches, CIBC may, at its option, with the prior approval of
the Superintendent of Financial Institutions Canada, redeem the notes, in
whole at any time, or in part from time to time, on not less than 30 days and
not more than 60 days notice to the registered holders. If redeemed prior to
June 6, 2013, in the case of the ten-year notes, and prior to June 6, 2018, in
the case of the fifteen-year notes, the redemption price will be the greater
of the "Canada Yield Price" and par. The notes are redeemable on and after
June 6, 2013, in the case of the ten-year notes, and on and after June 6,
2018, in the case of the fifteen-year notes, at par. The "Canada Yield Price"
for the ten-year notes is the price that would provide a yield from the
redemption date to June 6 2013, equal to the yield that a non-callable issue
of Government of Canada bonds would carry from the redemption date to June 6,
2013, plus 0.50%. The "Canada Yield Price" for the fifteen-year notes is the
price that would provide a yield from the redemption date to June 6 2018,
equal to the yield that a non-callable issue of Government of Canada bonds
would carry from the redemption date to June 6, 2018, plus 0.57%.
The Notes 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.
A NOTE ABOUT FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements. These
forward-looking statements include, but are not limited to, statements about
the offering. A forward-looking statement is subject to inherent risks and
uncertainties that may be general or specific. A variety of factors, many of
which are beyond CIBC's control, could cause actual results to differ
materially from the expectations expressed in CIBC's forward-looking
statements. Readers should not place undue reliance on CIBC's forward-looking
statements. CIBC does not undertake to update any forward-looking statement
that is contained in this news release except as required by law.
For further information:
For further information: John Ferren, Vice-President, Investor
Relations, (416) 980-2088 or Mary Lou Frazer, Senior Director, Investor &
Financial Communications, (416) 980-4111