/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
TORONTO, Sept. 9, 2020 /CNW/ -
CIBC (TSX: CM) (NYSE: CM) today announced an
offering of $750 million of 4.375% Limited Recourse
Capital Notes Series 1 (Non-Viability Contingent Capital (NVCC))
(Subordinated Indebtedness) (the "LRCNs"). The LRCNs will be
sold through a dealer syndicate led by CIBC Capital Markets.
The LRCNs will bear interest at a rate of 4.375% annually,
payable semi-annually, for the initial period ending on, but
excluding, October 28, 2025.
Thereafter, the interest rate on the LRCNs will reset every five
years at a rate equal to the prevailing 5-year Government of Canada
Yield plus 4.000%. The LRCNs will mature on October 28, 2080. The expected closing date of
the offering is September 16,
2020.
In connection with the issuance of the LRCNs, CIBC will issue
Non-Cumulative 5-Year Fixed Rate Reset Class A Preferred
Shares Series 53 (Non-Viability Contingent Capital (NVCC)) (the
"Series 53 Shares") to be held by Computershare Trust
Company of Canada as trustee of a
newly formed 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, which
will consist of Series 53 Shares except in limited
circumstances.
CIBC may redeem the LRCNs during the period from September 28 to and including October 28, commencing in 2025 and every five
years thereafter with the prior written approval of the
Superintendent of Financial Institutions (Canada), in whole or in part on not less than
15 nor more than 60 days' prior notice.
The net proceeds from this transaction will be used for general
banking purposes of CIBC.
The LRCNs have not been, and will not be, registered in
the United States under the United
States Securities Act of 1933, as amended (the "Securities
Act"), or the securities laws of any state of the United States and may not be offered, sold
or delivered, directly or indirectly in the United States or to, or for the account or
benefit of, a "U.S. person" (as defined in Regulation S under the
Securities Act) absent registration under the Securities Act or an
applicable exemption from such registration requirements. This
press release does not constitute an offer to sell or a
solicitation to buy securities in the
United States or in any other jurisdiction where such offer
or solicitation would be unlawful.
About CIBC
CIBC is a leading North American financial institution with 10
million personal banking, business, public sector and institutional
clients. Across Personal and Business Banking, Commercial Banking
and Wealth Management, and Capital Markets businesses, 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 https://www.cibc.com/en/about-cibc/media-centre.html.
SOURCE CIBC