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TORONTO, Jan. 10, 2018 /CNW/ - CIBC (TSX/NYSE: CM)
today announced that it had entered into an agreement with a group
of underwriters led by CIBC Capital Markets for an issue of 16
million Basel III-compliant Non-cumulative Rate Reset Class A
Preferred Shares Series 47 (Non-Viability Contingent Capital
(NVCC)) (the "Series 47 Shares") priced at $25.00 per Series 47 Share to raise gross
proceeds of $400 million.
CIBC has granted the underwriters an option to purchase up to an
additional two million Series 47 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 $450
million.
The Series 47 Shares will yield 50% per annum, payable
quarterly, as and when declared by the Board of Directors of CIBC,
for an initial period ending January
31, 2023. On January 31,
2023, and on January 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 2.45%.
Subject to regulatory approval and certain provisions of the
Series 47 Shares, on January 31, 2023
and on January 31 every five years
thereafter, CIBC may, at its option, redeem all or any part of the
then outstanding Series 47 Shares at par.
Subject to the right of redemption, holders of the Series 47
Shares will have the right to convert their shares into
Non-cumulative Floating Rate Class A Preferred Shares Series 48
(Non-Viability Contingent Capital (NVCC)) (the "Series 48 Shares"),
subject to certain conditions, on January
31, 2023 and on January 31
every five years thereafter. Holders of the Series 48 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
2.45%.
Holders of the Series 48 Shares may convert their Series 48
Shares into Series 47 Shares, subject to certain conditions, on
January 31, 2028 and on January 31 every five years thereafter.
The expected closing date is January
18, 2018. CIBC will make an application to list the
Series 47 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 unlawful.
About CIBC
CIBC is a leading Canadian-based global financial institution
with 11 million personal banking, business, public sector and
institutional clients. Across Personal and Small 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 http://cibc.mediaroom.com/.
SOURCE CIBC - Investor Relations