TORONTO, Aug. 27 /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 9 million non-cumulative Rate Reset Class A
Preferred Shares, Series 33 (the "Series 33 Shares") priced at $25.00 per
Series 33 Share to raise gross proceeds of $225 million.
    CIBC has granted the underwriters an option, exercisable in whole or in
part prior to closing, to purchase an additional 3 million Series 33 Shares at
the same offering price. Should the underwriters' option be fully exercised,
the total gross proceeds of the financing will be $300 million.
    The Series 33 Shares will yield 5.35% per annum, payable quarterly, as
and when declared by the Board of Directors of CIBC, for an initial period
ending July 31, 2014. On July 31, 2014 and on July 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 2.18%.
    Holders of the Series 33 Shares will have the right to convert their
shares into non-cumulative Floating Rate Class A Preferred Shares, Series 34
(the "Series 34 Shares"), subject to certain conditions, on July 31, 2014 and
on July 31 every five years thereafter. Holders of the Series 34 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 2.18%.
    Holders of the Series 34 Shares may convert their Series 34 Shares into
Series 33 Shares, subject to certain conditions, on July 31, 2019 and on July
31 every five years thereafter.
    The expected closing date is September 10, 2008. 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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