PrefBlog

Canadian Imperial Bank of Commerce has announced:

its intention to redeem all of its issued and outstanding Non-cumulative Class A Preferred Shares Series 29 (TSX: CM.PR.G), for cash. The redemption will occur on April 30, 2015. The redemption price is $25.00 per Series 29 share.

The $0.337500 quarterly dividend announced on February 26, 2015 will be the final dividend on the Series 29 shares and will be paid on April 28, 2015, covering the period to April 30, 2015, to shareholders of record on March 27, 2015.

Holders of the Series 29 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.G was issued in accordance with a prospectus dated June 4, 2004 as a matched unit of a warrant and a Series 28 preferred; it was a Straight Perpetual paying 5.40%.

The issue is noteworthy because it was convertible into common at the option of the bank; the right to exercise this option was assigned to OSFI in August, 2011, and the shares were thereafter deemed to be NVCC-compliant. Due to this, the initial assignment of these shares to the DeemedRetractible index was reversed and the issue considered to be a Straight Perpetual for reporting and analytical purposes. CM.PR.G is the last of CIBC’s preferreds that has been treated in this way; CM.PR.D and CM.PR.E have already been redeemed.

This entry was posted on Tuesday, March 3rd, 2015 at 10:18 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.