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
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
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
For further information:
Alice Dunning 416-861-8870 firstname.lastname@example.org
Jason Patchett 416-980-8691 email@example.com
Investor & Financial Communications
Erica Belling 416-594-7251 firstname.lastname@example.org