CM.PR.I to be Redeemed

Canadian Imperial Bank of Commerce has announced:

its intention to redeem all of its issued and outstanding Non-cumulative Class A Preferred Shares Series 31 for cash. The redemptions will occur on January 31, 2012. The redemption price is $26.00 per Series 31 share.

The $0.293750 per share quarterly dividend declared on November 30, 2011 will be the final dividend on the Series 31 shares and will be paid on January 27, 2012 to shareholders of record on December 28, 2011, as previously announced.

Holders of the Series 31 shares should contact the financial institution, broker or other intermediary through which they hold the shares to confirm how they will receive their redemption proceeds.

6 Responses to “CM.PR.I to be Redeemed”

  1. drap1 says:

    Hi James,
    It seems like CM is on a bit of a mission to get rid of these things.

    I’ve asked this before, but do you think that the banks and insurance companies are going to start issuing new prefs with the nvcc clause, or is the universe of prefs just going to shrink in the coming years?

    If so, have you seen any steps toward this beyond the move that CM made regarding the conversion option associated with cm.pr.d, cm.pr.e and cm.pr.g?

    It’s hard to imagine that there wouldn’t be an appetite for bank prefs, even if they are compliant with the new rules.

    Thanks

  2. jiHymas says:

    do you think that the banks and insurance companies are going to start issuing new prefs with the nvcc clause
    Yes. To the extent that they can consider preferreds (and other Innovative Tier 1 Capital) to be cheap equity, it will be issued.

    The rules are still being developed and the banks are still awash in capital at the moment, but all this will change.

    One possibility – with, I think, relatively low probability, but more than zero – is that they will start issuing prefs with both the NVCC clause AND an early conversion trigger. It’s more likely that they would do this with IT1C, because preferreds are a a retail product and needs to be commoditized. Still, it is easy to imagine it happening, as they seek to avoid the potential for having to issue common at an inopportune time (a la CIBC).

  3. drap1 says:

    thanks james

  4. […] Called for redemption. YTW SCENARIO Maturity Type : Call Maturity Date : 2013-01-31 Maturity Price : 25.75 Evaluated at bid price : 25.97 Bid-YTW : 3.56 % […]

  5. […] Called for redemption. YTW SCENARIO Maturity Type : Call Maturity Date : 2013-01-31 Maturity Price : 25.75 Evaluated at bid price : 25.99 Bid-YTW : 3.56 % […]

  6. […] Called for redemption. YTW SCENARIO Maturity Type : Call Maturity Date : 2013-01-31 Maturity Price : 25.75 Evaluated at bid price : 25.99 Bid-YTW : 3.57 % […]

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