/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
TORONTO, Sept. 9,
2022 /CNW/ - CIBC (TSX: CM) (NYSE: CM) today
announced a domestic public offering of $600
million of Non-Cumulative 5-Year Fixed Rate Reset Class A
Preferred Shares, Series 56 (Non-Viability Contingent Capital
(NVCC)) (the "Preferred Shares"). The Preferred Shares will be sold
to certain institutional investors through a dealer syndicate led
by CIBC Capital Markets.
The Preferred Shares will be issued at a price of $1,000 per share and will yield 7.361% annually.
The Preferred Shares will pay dividends at a rate of 7.365%
annually, payable semi-annually, as and when declared by the Board
of Directors of CIBC, for the initial period ending on, but
excluding, October 28, 2027.
Thereafter, the dividend rate on the Preferred Shares will reset
every five years at a rate equal to the prevailing 5-year
Government of Canada Yield plus 4.20%. The expected closing date of
the offering is September 16,
2022.
CIBC may redeem the Preferred Shares during the period
from September 28 to and
including October 28, commencing on
September 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 days' nor more than 60 days' prior notice.
The net proceeds from this transaction will be used for general
banking purposes of CIBC.
The Preferred Shares will be offered by way of a prospectus
supplement to the bank's short form base shelf prospectus dated
August 28, 2020, to be filed on or
about September 12, 2022 with the
securities commissions and other similar regulatory authorities in
each of the provinces and territories of Canada.
The Preferred Shares 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). 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 13
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