TORONTO, Jan. 26 /CNW/ - CIBC (CM: TSX; NYSE) today announced that it had
entered into an agreement with a group of underwriters led by CIBC World
Markets Inc. for an issue of 8 million non-cumulative Rate Reset Class A
Preferred Shares, Series 35 (the "Series 35 Shares") priced at $25.00 per
Series 35 Share to raise gross proceeds of $200 million.
    CIBC has granted the underwriters an option, exercisable in whole or in
part prior to closing, to purchase an additional 3 million Series 35 Shares at
the same offering price. Should the underwriters' option be fully exercised,
the total gross proceeds of the financing will be $275 million.
    The Series 35 Shares will yield 6.5% per annum, payable quarterly, as and
when declared by the Board of Directors of CIBC, for an initial period ending
April 30, 2014. On April 30, 2014 and on April 30 every five years thereafter,
the dividend rate will reset to be equal to the then current five-year
Government of Canada bond yield plus 4.47%.
    Holders of the Series 35 Shares will have the right to convert their
shares into non-cumulative Floating Rate Class A Preferred Shares, Series 36
(the "Series 36 Shares"), subject to certain conditions, on April 30, 2014 and
on April 30 every five years thereafter. Holders of the Series 36 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 4.47%.
    Holders of the Series 36 Shares may convert their Series 36 Shares into
Series 35 Shares, subject to certain conditions, on April 30, 2019 and on
April 30 every five years thereafter.
    The expected closing date is February 4, 2009. 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.

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