Canadian Imperial Bank of Commerce has announced:
that it does not intend to exercise its right to redeem all or any part of its currently outstanding 18,000,000 Non-cumulative Rate Reset Class A Preferred Shares Series 47 (Non-Viability Contingent Capital (NVCC)) (the “Series 47 Shares”) on January 31, 2023.
Subject to certain conditions set out in the prospectus supplement dated January 11, 2018 to the short form base shelf prospectus of CIBC dated March 16, 2016 relating to the issuance of the Series 47 Shares, the holders of Series 47 Shares have the right to convert all or any of their Series 47 Shares, on a one-for-one basis, into Non-cumulative Floating Rate Class A Preferred Shares Series 48 (Non-Viability Contingent Capital (NVCC)) of CIBC (the “Series 48 Shares”) on January 31, 2023.
On such date, holders who do not exercise their right to convert their Series 47 Shares into Series 48 Shares, will continue to hold their Series 47 Shares. The foregoing conversion rights are subject to the following:
- if CIBC determines that there would remain outstanding less than 1,000,000 Series 48 Shares, after having taken into account all Series 47 Shares tendered for conversion on January 31, 2023, then holders of Series 47 Shares will not be entitled to convert their shares into Series 48 Shares, and
- alternatively, if CIBC determines that there would remain outstanding less than 1,000,000 Series 47 Shares, after having taken into account all Series 47 Shares tendered for conversion on January 31, 2023, then all, but not part, of the remaining outstanding Series 47 Shares will automatically be converted into Series 48 Shares on a one-for-one basis on January 31, 2023.
In either case, CIBC will give written notice to that effect to the registered holder of Series 47 Shares no later than January 24, 2023.
The fixed dividend rate applicable to the Series 47 Shares, should any remain, for the five-year period from and including January 31, 2023 to but excluding January 31, 2028, as and when declared by the Board of Directors, and the floating dividend rate applicable to the Series 48 Shares, should any be issued, for the three-month period from and including January 31, 2023 to but excluding April 30, 2023, as and when declared by the Board of Directors of CIBC, will be determined and communicated on December 30, 2022. CIBC has designated the Series 48 Shares as eligible to participate in the CIBC Shareholder Investment Plan.
Beneficial owners of Series 47 Shares who wish to exercise their conversion right should instruct their broker or other nominee during the conversion period, which runs from January 1, 2023 until 5:00 p.m. (Eastern Standard Time) on January 16, 2023. It is recommended that this be done well in advance of the deadline in order to provide the broker or other nominee time to complete the necessary steps. Any notices received after this deadline will not be valid.
CM.PR.S was issued as a FixedReset, 4.50%+245, NVCC-compliant, that commenced trading 2018-1-18 after being announced January 10. It will be tracked by HIMIPref™ and is assigned to the FixedReset (Discount) subindex.
Thanks to Assiduous Reader CanSiamCyp for bringing this to my attention!
CVE prefs upgraded to 3H by DBRS
10:48 AM EST, 12/19/2022 (MT Newswires) — DBRS on Monday upgraded Cenovus Energy (CVE.TO) issuer rating and senior unsecured debt rating to BBB (high) from BBB and the company’s preferred shares rating to Pfd-3 (high) from Pfd-3.
All trends are stable.
As described for decades, the markets MUST be irrational. Of course, it is only a market of minds. CM-S? An increase in income of 18% for the next five years and the minds sell?
FRRs have sold OFF during falling interest rates, I get it. Good time to buy, price matters.
FRRs have sold OFF during rising interest rates and proven increases in income versus inflation? I don’t get it.
I suppose I would have no opportunity if the goonies WERE rational.
[…] Thanks to Assiduous Reader CanSiamCyp for bringing this to my attention! […]
CIBC announces the new div rate for CM.PR,S as 5.787%
https://cibc.mediaroom.com/2022-12-30-CIBC-Announces-Dividend-Rates-for-NVCC-Preferred-Shares-Series-47-and-NVCC-Preferred-Shares-Series-48
That is nearly 7% based on the current price of $21.10…the price has popped nearly $1 in recent trading days, perhaps a the 5yr GOC rate has risen sharply of late, which has given this issue such a lovely dividend. A year ago, who would have thought that a Schedule 1 bank would have a pref issue that would pay 7%?
> who would have thought that a Schedule 1 bank would have a pref issue that would pay 7%
apples aint oranges (or avocados), but given the track record of cibc consistently paying a dividend, I’m more tempted by the comons which are currently yielding 6.2% on their dividends. Fortunately I don’t run a fund that’s limited to a particular asset class.
avocado , i agree with you about the cibc common shares , but i think we can buy them cheaper in the first quarter 2023 . i have been selling naked puts on cibc march expiry , $52 strike . good luck , happy new year
[…] that commenced trading 2018-1-18 after being announced January 10. Notice of extension was provided 2022-12-15. The issue is tracked by HIMIPref™ and is assigned to the FixedReset (Discount) […]