/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
TORONTO, March 5,
2024 /CNW/ - CIBC
(TSX: CM) (NYSE: CM)
today announced a domestic public offering of $500 million of Non-Cumulative 5-Year Fixed Rate
Reset Class A Preferred Shares Series 57 (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 7.334% annually. The Preferred Shares will pay dividends at a
rate of 7.337% annually, payable semi-annually, as and when
declared by the Board of Directors of CIBC, for the initial period
ending on, but excluding, April 12,
2029. 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 3.90%. The expected closing
date of the offering is March 12,
2024.
CIBC may redeem the Preferred Shares during
the period from March 12 to and
including April 12, commencing on
March 12, 2029 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 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 September 23, 2022,
to be filed on or about March 6, 2024
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 14 million personal banking, business, public
sector and institutional clients. Across Personal and Business
Banking, Commercial Banking and Wealth Management, and Capital
Markets and Direct Financial Services 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 www.cibc.com/ca/media-centre.
SOURCE CIBC