CIBC Announces Completion of Offering of Preferred Shares
TORONTO, Sept. 10 /CNW/ - CIBC (CM: TSX; NYSE) today announced that it completed the offering of 12 million non-cumulative Rate Reset Class A Preferred Shares Series 33 (the "Series 33 Shares") priced at $25.00 per share to raise gross proceeds of $300 million. The offering was made through a syndicate of underwriters led by CIBC World Markets Inc. Following the successful sale of the initially announced 9 million Series 33 Shares, the underwriters exercised an option to purchase an additional 3 million shares. The Series 33 Shares commence trading on the Toronto Stock Exchange today under the ticket symbol CM.PR.K. 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. At such time and 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 Series 33 Shares are redeemable by CIBC, subject to regulatory approval, for $25.00 per share on July 31, 2014 and on July 31st every five years thereafter. The Series 34 Shares are redeembable by CIBC, subject to regulatory approval, for $25.00 per share on July 31, 2019 and on July 31st every five years thereafter, or for $25.50 per share on any other date after July 31, 2019. 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.
For further information:
For further information: John Ferren, Vice-President, Investor Relations, (416) 980-2088; or Mary Lou Frazer, Senior Director, Investor & Financial Communications, (416) 980-4111