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CIBC to Issue 6.500% NVCC AT1 Limited Recourse Capital Notes
CIBC (TSX: CM) (NYSE: CM) today announced the public offering in the United States of US$700 million of 6.500% Fixed Rate Reset Limited Recourse Capital Notes Series 9 (Non-Viability Contingent Capital (NVCC)) (Subordinated Indebtedness) (the "LRCNs").
About this update from Computershare Limited
[{"type":"text","content":"TORONTO, Jan. 9, 2026 /CNW/ - CIBC (TSX: CM) (NYSE: CM) today announced the public offering in the United States of US$700 million of 6.500% Fixed Rate Reset Limited Recourse Capital Notes Series 9 (Non-Viability Contingent Capital (NVCC)) (Subordinated Indebtedness) (the "LRCNs").","length":302,"tagName":"p"},{"type":"image","alt":"CIBC logo (CNW Group/CIBC - Investor Relations)","displaySize":"","headline":null,"caption":"CIBC logo (CNW Group/CIBC - Investor Relations)","className":"","disableSlideshowImg":false,"size":{"original":{"width":400,"height":103,"url":"https://media.zenfs.com/en/cnwgroup.com/7a49720af5a00d47bfce2cf139cd153d"},"resized":{"url":"https://s.yimg.com/ny/api/res/1.2/kbuMjR9XgFEZmTGkqCZnmg--/YXBwaWQ9aGlnaGxhbmRlcjt3PTcwNTtoPTE4MjtjZj13ZWJw/https://media.zenfs.com/en/cnwgroup.com/7a49720af5a00d47bfce2cf139cd153d","width":400,"height":103}},"href":"https://mma.prnewswire.com/media/2857884/CIBC___Investor_Relations_CIBC_to_Issue_6_500__NVCC_AT1_Limited.html","hrefExternal":true,"rel":"nofollow"},{"type":"text","content":"The LRCNs will bear interest at a rate of 6.500% annually, payable quarterly, for the initial period ending on, but excluding, July 28, 2031. 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 2.727%. The LRCNs will mature on July 28, 2086. The expected closing date of the offering is January 13, 2026.","length":408,"tagName":"p"},{"type":"text","content":"In connection with the issuance of the LRCNs, CIBC will issue Non-Cumulative 5-Year Fixed Rate Reset Class A Preferred Shares Series 64 (Non-Viability Contingent Capital (NVCC)) (the "Series 64 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 64 Shares except in limited circumstances.","length":672,"tagName":"p"},{"type":"text","content":"CIBC may redeem the LRCNs on July 28, 2031 and on each January 28, April 28, July 28 a...