PrefBlog

Canadian Imperial Bank of Commerce has announced:

that, during the conversion notice period which ran from July 1, 2020 to July 16, 2020, 106,305 Non-cumulative Rate Reset Class A Preferred Shares Series 43 (Non-Viability Contingent Capital (NVCC)) of CIBC (the “Series 43 Shares”) were tendered for conversion, on a one-for-one basis, into Non-cumulative Floating Rate Class A Preferred Shares Series 44 (Non-Viability Contingent Capital (NVCC)) of CIBC (the “Series 44 Shares”). As per the conditions set out in the prospectus supplement dated February 27, 2015 relating to the issuance of the Series 43 Shares, since less than 1,000,000 Series 44 Shares would be outstanding on July 31, 2020, holders of Series 43 Shares who tendered their Series 43 Shares for conversion will not be entitled to convert their shares into Series 44 Shares. As a result, Series 44 Shares will not be issued at this time.

On July 31, 2020, CIBC will have 12,000,000 Series 43 Shares issued and outstanding. The Series 43 Shares are currently listed on the Toronto Stock Exchange under the symbol CM.PR.Q.

The fixed dividend rate applicable to the Series 43 Shares for the five-year period from and including July 31, 2020 to but excluding July 31, 2025 is 3.143%, payable quarterly as and when declared by the Board of Directors of CIBC.

CM.PR.Q is a FixedReset, 3.60%+279, that commenced trading 2015-3-11 after being announced 2015-2-26. It will reset to 3.143% effective 2020-7-31. The issue is tracked by HIMIPref™ and is assigned to the FixedResets (Discount) subindex.

This entry was posted on Monday, July 20th, 2020 at 7:54 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.