New Issue : CIBC 4.7% Perp

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

  CM.PR.H New Issue
Base Rate 24.02 23.83
Price due to short-term 0.09 0.10
Price due to long-term 0.52 0.48
Price due to error 0.02 0.01
Price due to Credit Spread (Low) -0.54 -0.49
Intrinsic 24.11 23.93
Price due to Liquidity 1.58 1.58?
Total $25.69 $25.51?

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.

5 Responses to “New Issue : CIBC 4.7% Perp”

  1. […] Perhaps this is people cashing out of the called issue to buy the new one? […]

  2. […] CM.PR.I, the new issue discussed November 6, commenced trading today and closed at $24.91-92 on volume of 288,892 shares, having traded in the range 24.89-99 throughout the day. […]

  3. […] New issue closed Nov. 15, continues to trade heavily. Now with a pre-tax bid-YTW of 4.52% based on a bid of $25.51 and a call 2016-3-1 at $25.00 […]

  4. […] Scotia crossed 40,000 at $26.30, which was the closing bid. Pre-tax YTW of 4.52% based on a call 2014-10-31. Not a lot when bank perpetuals are being issued to yield 4.70%. […]

  5. […] New Issue November 15, continues to trade heavily. Now with a pre-tax bid-YTW of 4.52% based on a bid of $25.50 and a call 2016-3-1 at 4.52% […]

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