October 29, 2024

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
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
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 Quote: 19.01 – 20.75
Spot Rate : 1.7400
Average : 1.0193

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 Quote: 20.35 – 22.07
Spot Rate : 1.7200
Average : 1.0260

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 Quote: 18.49 – 19.52
Spot Rate : 1.0300
Average : 0.5960

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 %

POW.PR.D Perpetual-Discount Quote: 19.78 – 20.90
Spot Rate : 1.1200
Average : 0.7659

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 Quote: 21.82 – 22.70
Spot Rate : 0.8800
Average : 0.5381

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 %

Leave a Reply

You must be logged in to post a comment.