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CIBC to Issue 6.950% NVCC AT1 Limited Recourse Capital Notes
CIBC to Issue 6.950% NVCC AT1 Limited Recourse Capital Notes Canada NewsWire ...
About this update from Canadian Imperial Bank Of Commerce
[{"type":"text","content":"\n\n\n\n CIBC to Issue 6.950% NVCC AT1 Limited Recourse Capital Notes\n \n\n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n\n\n\n\n\n Canada NewsWire\n \n\n\n\n\n\n TORONTO\n \n\n ,\n \n\n Oct. 29, 2024\n \n\n /CNW/ - CIBC (TSX: CM) (NYSE: CM) today announced the public offering in\n \n the United States\n \n of US$500 million of 6.950% Fixed Rate Reset Limited Recourse Capital Notes Series 5 (Non-Viability Contingent Capital (NVCC)) (Subordinated Indebtedness) (the \"LRCNs\").\n \n\n The LRCNs will bear interest at a rate of 6.950% annually, payable quarterly, for the initial period ending on, but excluding, January 28, 2030. Thereafter, the interest rate on the LRCNs will reset every five years at a rate equal to the prevailing 5-year U.S. Treasury Rate plus 2.833%. The LRCNs will mature on January 28, 2085. The expected closing date of the offering is November 5, 2024.\n \n\n In connection with the issuance of the LRCNs, CIBC will issue Non-Cumulative 5-Year Fixed Rate Reset Class A Preferred Shares Series 59 (Non-Viability Contingent Capital (NVCC)) (the \"Series 59 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 59 Shares except in limited circumstances.\n \n\n CIBC may redeem the LRCNs on\n \n January 28\n \n , 2030 and on each\n \n January 28\n \n ,\n \n April 28\n \n ,\n \n July 28\n \n and\n \n October 28\n \n thereafter with the prior written approval of the Superintendent of Financial Institutions (\n \n Canada\n \n ), in whole or in part on not less than 10 days' nor more than 60 days' prior notice.\n \n\n 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 capit...