/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES/
TORONTO, June 8, 2022
/CNW/ - CIBC (TSX: CM) (NYSE: CM) today announced an
offering of $800 million of
7.150% Limited Recourse Capital Notes Series 3 (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 7.150% annually,
payable semi-annually, for the initial period ending on, but
excluding, July 28, 2027. 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 July 28,
2082. The expected closing date of the offering is
June 15, 2022.
In connection with the issuance of the LRCNs, CIBC will issue
Non-Cumulative 5-Year Fixed Rate Reset Class A Preferred Shares
Series 55 (Non-Viability Contingent Capital (NVCC)) (the "Series
55 Shares") to be held by Computershare Trust Company of
Canada as trustee of CIBC LRCN
Limited Recourse 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
held in respect of the LRCNs, which will consist of Series 55
Shares except in limited circumstances.
CIBC may redeem the LRCNs during the period from June 28 to and including July 28, commencing on June 28, 2027 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
10 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 11
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