PrefBlog

Well, it didn’t take long for CIBC to replace the capital lost via the redemption of CM.PR.B! They announced a new issue (with a headline announcing a redemption!) that will close on November 15.

 Terms of the issue (Class A Series 31) are:

Dividend: Non-cumulative, 4.7% on $25.00 p.v. is $1.1750

Callable:

• $26.00, 2012-1-31 – 2013-1-30
• $25.75, 2013-1-31 – 2014-1-30
• $25.50, 2014-1-31 – 2015-1-30
• $25.25, 2015-1-31 – 2016-1-30
• $25.00, 2016-1-31 +

DBRS: Pfd-1 (low)

S&P: P-1 (low)

There will be 16-million shares outstanding; underwriters have a greenshoe option for an additional 2-million shares. It’s a bought deal.

The terms of this issue make it a reasonably close match to CM.PR.H, issued 2005-3-10, paying $1.20, call schedule commencing 2001-3-30, closing 2006-11-3 at $25.80-89

Basically, the thing looks pretty good … priced to move! I’ll also note that it yields 10bp more (at issue) than the recently issued RY.PR.C, in terms of PRE-TAX DIVIDENDS, which is about right considering that the credit spread for “Low” is 11bp AFTER TAX.

This issue has been entered into HIMIPref™ with the temporary security code P50007.

This entry was posted on Monday, November 6th, 2006 at 11:00 am and is filed under Data Changes, New Issues. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.