/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
The prospectus supplement, the corresponding base shelf
prospectus and any amendment thereto in connection with this
offering will be accessible through SEDAR+ within two business
days.
TORONTO, June 18,
2024 /CNW/ - CIBC (TSX: CM) (NYSE: CM) today
announced a domestic public offering of $500
million of 6.987% Limited Recourse Capital
Notes Series 4 (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 6.987%
annually, payable semi-annually, for the initial period ending on,
but excluding, July 28, 2029.
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 3.70%. The LRCNs will mature on
July 28, 2084. The expected closing
date of the offering is June 25,
2024.
In connection with the issuance of the LRCNs, CIBC will issue
Non-Cumulative 5-Year Fixed Rate Reset Class A Preferred Shares
Series 58 (Non-Viability Contingent Capital (NVCC)) (the "Series
58 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 58
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, 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 nor
more than 60 days' prior notice.
The net proceeds to CIBC from the sale of the LRCNs will be used
for general corporate purposes, which may include the redemption of
outstanding capital securities of CIBC, and/or the repayment of
other outstanding liabilities of CIBC.
The LRCNs 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
June 19, 2024 with the securities
commissions and other similar regulatory authorities in each of the
provinces and territories of Canada.
Access to the prospectus supplement, the corresponding base
shelf prospectus and any amendment thereto in connection with this
offering is provided in accordance with securities legislation
relating to procedures for providing access to a shelf prospectus
supplement, a base shelf prospectus and any amendment thereto. The
prospectus supplement, the base shelf prospectus and any amendment
thereto in connection with this offering will be accessible within
two business days at www.sedarplus.com.
An electronic or paper copy of the shelf prospectus supplement,
the corresponding base shelf prospectus and any amendment to the
documents may be obtained, without charge, from CIBC World Markets
Inc., by contacting 416-594-8515 or email at
Mailbox.CIBCDebtSyndication@cibc.com, by providing the contact with
an email address or address, as applicable.
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 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 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