CM announced an LRCN issue today:
CIBC (TSX: CM) (NYSE: CM) today announced the public offering in the United States of US$500 million of 6.950% Fixed Rate Reset Limited Recourse Capital Notes Series 5 (Non-Viability Contingent Capital (NVCC)) (Subordinated Indebtedness) (the “LRCNs”).
The LRCNs will bear interest at a rate of 6.950% annually, payable quarterly, for the initial period ending on, but excluding, January 28, 2030. Thereafter, the interest rate on the LRCNs will reset every five years at a rate equal to the prevailing 5-year U.S. Treasury Rate plus 2.833%. The LRCNs will mature on January 28, 2085. The expected closing date of the offering is November 5, 2024.
In connection with the issuance of the LRCNs, CIBC will issue Non-Cumulative 5-Year Fixed Rate Reset Class A Preferred Shares Series 59 (Non-Viability Contingent Capital (NVCC)) (the “Series 59 Shares”) to be held by Computershare Trust Company of Canada as trustee of CIBC LRCN Limited Recourse Trust (the “Limited Recourse Trust”). In case of non-payment of interest on or principal of the LRCNs when due, the recourse of each LRCN holder will be limited to that holder’s proportionate share of the Limited Recourse Trust’s assets held in respect of the LRCNs, which will consist of Series 59 Shares except in limited circumstances.
CIBC may redeem the LRCNs on January 28, 2030 and on each January 28, April 28, July 28 and October 28 thereafter with the prior written approval of the Superintendent of Financial Institutions (Canada), in whole or in part on not less than 10 days’ nor more than 60 days’ prior notice.
The net proceeds to CIBC from the sale of the LRCNs will be used for general corporate purposes, which may include the redemption of outstanding capital securities of CIBC, and/or the repayment of other outstanding liabilities of CIBC.
The joint book-running managers for the offering are CIBC World Markets Corp., BNP Paribas Securities Corp., BofA Securities, Inc., Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC.
Thanks to Assiduous Reader IrateAR for bringing this to my attention!
| HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly |
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| Index | Mean Current Yield (at bid) |
Median YTW |
Median Average Trading Value |
Median Mod Dur (YTW) |
Issues | Day’s Perf. | Index Value |
| Ratchet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.2990 % | 2,147.0 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.2990 % | 4,117.9 |
| Floater | 8.87 % | 9.35 % | 35,686 | 10.05 | 4 | 0.2990 % | 2,373.2 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0400 % | 3,603.0 |
| SplitShare | 4.79 % | 5.33 % | 46,104 | 1.27 | 8 | -0.0400 % | 4,302.8 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0400 % | 3,357.2 |
| Perpetual-Premium | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.7831 % | 2,851.6 |
| Perpetual-Discount | 6.04 % | 6.13 % | 51,603 | 13.68 | 31 | -0.7831 % | 3,109.5 |
| FixedReset Disc | 5.53 % | 7.01 % | 112,939 | 12.49 | 58 | -0.2705 % | 2,658.8 |
| Insurance Straight | 5.95 % | 6.08 % | 67,700 | 13.77 | 20 | -1.8421 % | 3,040.9 |
| FloatingReset | 7.39 % | 7.50 % | 27,079 | 11.90 | 1 | -0.7937 % | 2,849.1 |
| FixedReset Prem | 6.40 % | 5.68 % | 182,024 | 3.75 | 7 | -0.0055 % | 2,586.6 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.2705 % | 2,717.9 |
| FixedReset Ins Non | 5.28 % | 6.26 % | 86,587 | 13.49 | 14 | -1.0716 % | 2,780.4 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| IFC.PR.C | FixedReset Ins Non | -11.11 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 18.00 Evaluated at bid price : 18.00 Bid-YTW : 7.59 % |
| BN.PF.F | FixedReset Disc | -7.27 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 19.01 Evaluated at bid price : 19.01 Bid-YTW : 7.88 % |
| GWO.PR.G | Insurance Straight | -6.86 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 20.35 Evaluated at bid price : 20.35 Bid-YTW : 6.48 % |
| BN.PF.C | Perpetual-Discount | -5.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 18.49 Evaluated at bid price : 18.49 Bid-YTW : 6.65 % |
| IFC.PR.E | Insurance Straight | -4.97 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 21.24 Evaluated at bid price : 21.24 Bid-YTW : 6.20 % |
| POW.PR.D | Perpetual-Discount | -4.90 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 19.78 Evaluated at bid price : 19.78 Bid-YTW : 6.39 % |
| PWF.PR.R | Perpetual-Discount | -3.88 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 21.56 Evaluated at bid price : 21.82 Bid-YTW : 6.33 % |
| CU.PR.F | Perpetual-Discount | -3.01 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 18.70 Evaluated at bid price : 18.70 Bid-YTW : 6.13 % |
| CU.PR.H | Perpetual-Discount | -2.67 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 21.65 Evaluated at bid price : 21.90 Bid-YTW : 6.09 % |
| MFC.PR.N | FixedReset Ins Non | -2.56 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 20.90 Evaluated at bid price : 20.90 Bid-YTW : 6.45 % |
| SLF.PR.C | Insurance Straight | -2.55 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 19.85 Evaluated at bid price : 19.85 Bid-YTW : 5.68 % |
| IFC.PR.I | Insurance Straight | -2.44 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 22.07 Evaluated at bid price : 22.40 Bid-YTW : 6.09 % |
| GWO.PR.T | Insurance Straight | -2.39 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 21.25 Evaluated at bid price : 21.25 Bid-YTW : 6.14 % |
| GWO.PR.I | Insurance Straight | -1.97 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 18.95 Evaluated at bid price : 18.95 Bid-YTW : 6.02 % |
| ENB.PR.A | Perpetual-Discount | -1.88 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 22.72 Evaluated at bid price : 23.01 Bid-YTW : 6.08 % |
| GWO.PR.P | Insurance Straight | -1.82 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 21.89 Evaluated at bid price : 22.13 Bid-YTW : 6.17 % |
| MFC.PR.C | Insurance Straight | -1.76 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 19.50 Evaluated at bid price : 19.50 Bid-YTW : 5.86 % |
| GWO.PR.H | Insurance Straight | -1.75 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 20.16 Evaluated at bid price : 20.16 Bid-YTW : 6.09 % |
| PWF.PR.Z | Perpetual-Discount | -1.65 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 20.90 Evaluated at bid price : 20.90 Bid-YTW : 6.20 % |
| GWO.PR.L | Insurance Straight | -1.62 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 22.79 Evaluated at bid price : 23.07 Bid-YTW : 6.19 % |
| GWO.PR.Y | Insurance Straight | -1.61 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 18.89 Evaluated at bid price : 18.89 Bid-YTW : 6.03 % |
| IFC.PR.A | FixedReset Ins Non | -1.49 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 18.52 Evaluated at bid price : 18.52 Bid-YTW : 6.57 % |
| BIP.PR.F | FixedReset Disc | -1.48 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 22.06 Evaluated at bid price : 22.56 Bid-YTW : 6.86 % |
| SLF.PR.E | Insurance Straight | -1.46 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 20.30 Evaluated at bid price : 20.30 Bid-YTW : 5.61 % |
| POW.PR.A | Perpetual-Discount | -1.46 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 22.72 Evaluated at bid price : 23.01 Bid-YTW : 6.13 % |
| BN.PR.Z | FixedReset Disc | -1.44 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 20.50 Evaluated at bid price : 20.50 Bid-YTW : 7.49 % |
| CU.PR.E | Perpetual-Discount | -1.40 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 20.46 Evaluated at bid price : 20.46 Bid-YTW : 6.10 % |
| BN.PF.D | Perpetual-Discount | -1.37 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 19.40 Evaluated at bid price : 19.40 Bid-YTW : 6.40 % |
| GWO.PR.M | Insurance Straight | -1.33 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 23.41 Evaluated at bid price : 23.70 Bid-YTW : 6.19 % |
| POW.PR.B | Perpetual-Discount | -1.31 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 21.65 Evaluated at bid price : 21.90 Bid-YTW : 6.16 % |
| PWF.PR.H | Perpetual-Discount | -1.27 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 23.04 Evaluated at bid price : 23.31 Bid-YTW : 6.20 % |
| CU.PR.G | Perpetual-Discount | -1.14 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 19.13 Evaluated at bid price : 19.13 Bid-YTW : 5.99 % |
| PWF.PR.G | Perpetual-Discount | -1.11 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 23.72 Evaluated at bid price : 24.03 Bid-YTW : 6.17 % |
| GWO.PR.R | Insurance Straight | -1.08 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 20.18 Evaluated at bid price : 20.18 Bid-YTW : 6.03 % |
| BIP.PR.E | FixedReset Disc | -1.08 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 22.39 Evaluated at bid price : 23.00 Bid-YTW : 6.82 % |
| GWO.PR.S | Insurance Straight | -1.04 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 21.55 Evaluated at bid price : 21.81 Bid-YTW : 6.08 % |
| ENB.PR.F | FixedReset Disc | 1.03 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 18.63 Evaluated at bid price : 18.63 Bid-YTW : 7.64 % |
| MFC.PR.F | FixedReset Ins Non | 1.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 15.69 Evaluated at bid price : 15.69 Bid-YTW : 6.82 % |
| BN.PR.X | FixedReset Disc | 5.33 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 16.02 Evaluated at bid price : 16.02 Bid-YTW : 7.64 % |
| PWF.PR.S | Perpetual-Discount | 18.67 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 19.70 Evaluated at bid price : 19.70 Bid-YTW : 6.13 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| PWF.PR.P | FixedReset Disc | 196,600 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 14.95 Evaluated at bid price : 14.95 Bid-YTW : 7.43 % |
| BMO.PR.W | FixedReset Disc | 101,300 | YTW SCENARIO Maturity Type : Call Maturity Date : 2024-12-25 Maturity Price : 25.00 Evaluated at bid price : 25.16 Bid-YTW : 4.89 % |
| SLF.PR.G | FixedReset Ins Non | 101,000 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 16.10 Evaluated at bid price : 16.10 Bid-YTW : 6.82 % |
| SLF.PR.E | Insurance Straight | 54,300 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 20.30 Evaluated at bid price : 20.30 Bid-YTW : 5.61 % |
| MFC.PR.N | FixedReset Ins Non | 51,500 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2054-10-29 Maturity Price : 20.90 Evaluated at bid price : 20.90 Bid-YTW : 6.45 % |
| BMO.PR.E | FixedReset Prem | 27,848 | YTW SCENARIO Maturity Type : Call Maturity Date : 2028-11-25 Maturity Price : 25.00 Evaluated at bid price : 26.36 Bid-YTW : 5.68 % |
| There were 19 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| Issue | Index | Quote Data and Yield Notes |
| IFC.PR.C | FixedReset Ins Non | Quote: 18.00 – 20.90 Spot Rate : 2.9000 Average : 1.8458 YTW SCENARIO |
| BN.PF.F | FixedReset Disc | Quote: 19.01 – 20.75 Spot Rate : 1.7400 Average : 1.0193 YTW SCENARIO |
| GWO.PR.G | Insurance Straight | Quote: 20.35 – 22.07 Spot Rate : 1.7200 Average : 1.0260 YTW SCENARIO |
| BN.PF.C | Perpetual-Discount | Quote: 18.49 – 19.52 Spot Rate : 1.0300 Average : 0.5960 YTW SCENARIO |
| POW.PR.D | Perpetual-Discount | Quote: 19.78 – 20.90 Spot Rate : 1.1200 Average : 0.7659 YTW SCENARIO |
| PWF.PR.R | Perpetual-Discount | Quote: 21.82 – 22.70 Spot Rate : 0.8800 Average : 0.5381 YTW SCENARIO |
CM.PR.P which is callable in 2 months, did not react much to this news. It last traded at 24.57. Either the news was already priced in? Or the market does not believe it will be called
It closed at 24.20 on Friday and reacted on Monday when the LRCN started being marketed.
It was announced on Tuesday. I assume that is the when it becomes public knowledge no?
They’re announcing after the deal has been sold so everyone at the book-runners and all their clients heard about beforehand.
Bloomberg had a story about it on the terminal from an anonymous source pre-open on Monday.
So that’s slightly better than when it comes out entirely during the day but yes it would be nice to have it from an official source and available to people not paying 3 grand a month…
but yes it would be nice to have it from an official source and available to people not paying 3 grand a month…
This would be met with stiff resistance from the guys who pay 3 grand a month. The artificial information wall helps them fleece the innocents.
Not to mention from the bank issuers themselves who (surprise!) employ many of those who fleece the innocents and make sure they get their cut of the loot.
I thought insider trading was illegal. Where are the regulators?
Personally I think this is more apathy / lack of awareness than any sort of greed. Things are halted for news all the time this is just a weird case where a bond issuance is material to a listed product. Changing things is work for someone but if CIRO gets enough complaints it could happen.
Thanks for the responses. Good information.