PrefBlog

The Canadian Imperial Bank of Commerce has announced:

that, during the conversion notice period which ran from July 1, 2019 to July 16, 2019, 350,312 Non-cumulative Rate Reset Class A Preferred Shares Series 39 (Non-Viability Contingent Capital (NVCC)) of CIBC (the “Series 39 Shares”) were tendered for conversion, on a one-for-one basis, into Non-cumulative Floating Rate Class A Preferred Shares Series 40 (Non-Viability Contingent Capital (NVCC)) of CIBC (the “Series 40 Shares”). As per the conditions set out in the prospectus supplement dated June 2, 2014 relating to the issuance of the Series 39 Shares, since less than 1,000,000 Series 40 Shares would be outstanding on July 31, 2019, holders of Series 39 Shares who tendered their Series 39 Shares for conversion will not be entitled to convert their shares into Series 40 Shares. As a result, Series 40 Shares will not be issued at this time.

On July 31, 2019, CIBC will have 16,000,000 Series 39 Shares issued and outstanding. The Series 39 Shares are currently listed on the Toronto Stock Exchange under the symbol CM.PR.O.

The quarterly fixed dividend rate applicable to the Series 39 Shares for the five-year period from and including July 31, 2019 to but excluding July 31, 2024 is 3.713%, payable quarterly as and when declared by the Board of Directors of CIBC.

CM.PR.O is a FixedReset, 3.90%+232, NVCC-compliant, that commenced trading 2014-6-11 after being announced 2014-6-2. The extension was announced 2019-6-12. The issue will reset At 3.713% effective July 31, 2019. I recommended against conversion. CM.PR.O is tracked by HIMIPref™ and is assigned to the FixedReset (Discount) subindex.

This entry was posted on Thursday, July 18th, 2019 at 5:29 pm and is filed under Issue Comments. 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.