PrefBlog

CIBC has announced:

that it completed the offering of 8 million non-cumulative Rate Reset Class A Preferred Shares Series 37 (the “Series 37 Shares”) priced at $25.00 per share to raise gross proceeds of $200 million.

The offering was made through a syndicate of underwriters led by CIBC World Markets Inc. The Series 37 Shares commence trading on the Toronto Stock Exchange today under the ticker symbol CM.PR.M.

The Series 37 Shares will yield 6.5% per annum, payable quarterly, for an initial period ending July 31, 2014. On July 31, 2014, and on July 31 every five years thereafter, the dividend rate will reset to be equal to the then current five-year Government of Canada bond yield plus 4.33%.

As noted in the new issue announcement, the size was the 8-million shares announced above, plus a 3-million share greenshoe.

The issue cannot be labelled a complete failure, however, as it traded 262,889 shares in a range of 24.60-78 before closing at 24.62-71, 10×20.

CM.PR.M is tracked by HIMIPref™ and is included in the Fixed-Reset subindex.

This entry was posted on Friday, March 6th, 2009 at 8:16 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.