CM.PR.K and CM.PR.M To Be Redeemed

The Canadian Imperial Bank of Commerce has announced:

its intention to redeem all of its issued and outstanding Non-cumulative Rate Reset Class A Preferred Shares Series 33 (TSX: CM.PR.K), and Non-cumulative Rate Reset Class A Preferred Shares Series 37 (TSX: CM.PR.M), for cash. The redemptions will occur on July 31, 2014. The redemption price is $25.00 per Series 33 or Series 37 share.

The quarterly dividends of $0.334375 per Series 33 share and $0.406250 per Series 37 share, announced on May 29, 2014 will be the final dividends for these two series. These dividends will be paid on July 28, 2014 to shareholders of record on June 27, 2014.

Holders of the Series 33 and Series 37 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.

CM.PR.K is a Fixed-Reset 5.35%+218bp that commenced trading 2008-9-10 after being announced 2008-8-27.

CM.PR.M is a Fixed-Reset 6.50%+433 that commenced trading 2009-3-6 after being announced 2009-2-26.

Due to the very large Issue Reset Spread, there is no surprise at the call on CM.PR.M. The other issue, CM.PR.K, is perhaps a bit more of a surprise, particularly since they also announced a new issue with a spread of 232bp. However, the new issue is NVCC compliant, and CM.PR.K isn’t.

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