CIBC has announced an LRCN issue, 6.631%+297 (taxable to holders as interest):
CIBC (TSX: CM) (NYSE: CM) today announced a domestic public offering of $1.0 billion of 6.631% Limited Recourse Capital Notes Series 11 (Non-Viability Contingent Capital (“NVCC”)) (Subordinated Indebtedness) (the “LRCNs”). The LRCNs will be sold to certain institutional investors through a dealer syndicate led by CIBC Capital Markets.
The LRCNs will be issued at a price of $1,000 per note and will bear interest at a rate of 6.631% annually, payable semi-annually, for the initial period ending on, but excluding, November 28, 2031. Thereafter, the interest rate on the LRCNs will reset every five years at a rate equal to the prevailing 5-year Government of Canada Yield plus 2.970%. The LRCNs will mature on November 28, 2086. The expected closing date of the offering is October 28, 2026.
In connection with the issuance of the LRCNs, CIBC will issue Non-Cumulative 5-Year Fixed Rate Reset Class A Preferred Shares Series 66 (NVCC) (the “Series 66 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 66 Shares except in limited circumstances.
CIBC may redeem the LRCNs during the period from October 28 to and including November 28, commencing on October 28, 2031 and every five years 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 LRCNs will be offered by way of a prospectus supplement to the bank’s short form base shelf prospectus dated October 5, 2026, to be filed on or about October 20, 2026 with the securities commissions and other similar regulatory authorities in each of the provinces and territories of Canada.
| 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 | 0.0340 % | 2,775.4 |
| FixedFloater | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0340 % | 5,226.5 |
| Floater | 5.29 % | 5.34 % | 50,902 | 14.94 | 2 | 0.0340 % | 3,012.1 |
| OpRet | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0080 % | 3,613.0 |
| SplitShare | 4.80 % | 5.33 % | 59,405 | 2.43 | 5 | -0.0080 % | 4,314.7 |
| Interest-Bearing | 0.00 % | 0.00 % | 0 | 0.00 | 0 | -0.0080 % | 3,366.5 |
| Perpetual-Premium | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.4209 % | 3,057.0 |
| Perpetual-Discount | 5.73 % | 5.76 % | 51,599 | 14.19 | 32 | 0.4209 % | 3,289.4 |
| FixedReset Disc | 5.71 % | 6.30 % | 83,465 | 13.20 | 24 | 0.0315 % | 3,357.6 |
| Insurance Straight | 5.69 % | 5.75 % | 72,098 | 14.25 | 19 | -0.2034 % | 3,164.6 |
| FloatingReset | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0315 % | 4,099.7 |
| FixedReset Prem | 6.01 % | 4.80 % | 80,916 | 1.94 | 24 | -0.0405 % | 2,625.3 |
| FixedReset Bank Non | 0.00 % | 0.00 % | 0 | 0.00 | 0 | 0.0315 % | 3,432.2 |
| FixedReset Ins Non | 5.60 % | 5.66 % | 50,514 | 4.29 | 13 | -0.6994 % | 3,254.7 |
| Performance Highlights | |||
| Issue | Index | Change | Notes |
| MFC.PR.Q | FixedReset Ins Non | -2.43 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2028-06-19 Maturity Price : 25.00 Evaluated at bid price : 25.25 Bid-YTW : 5.68 % |
| MFC.PR.N | FixedReset Ins Non | -2.40 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-21 Maturity Price : 22.92 Evaluated at bid price : 24.00 Bid-YTW : 6.07 % |
| GWO.PR.P | Insurance Straight | -1.56 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-21 Maturity Price : 23.16 Evaluated at bid price : 23.42 Bid-YTW : 5.82 % |
| GWO.PR.Q | Insurance Straight | -1.27 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-21 Maturity Price : 22.21 Evaluated at bid price : 22.49 Bid-YTW : 5.77 % |
| SLF.PR.C | Insurance Straight | -1.08 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-21 Maturity Price : 20.10 Evaluated at bid price : 20.10 Bid-YTW : 5.60 % |
| SLF.PR.H | FixedReset Ins Non | -1.07 % | YTW SCENARIO Maturity Type : Call Maturity Date : 2031-09-30 Maturity Price : 25.00 Evaluated at bid price : 25.06 Bid-YTW : 5.58 % |
| MFC.PR.C | Insurance Straight | -1.02 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-21 Maturity Price : 20.30 Evaluated at bid price : 20.30 Bid-YTW : 5.61 % |
| FTS.PR.K | FixedReset Disc | -1.01 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-21 Maturity Price : 23.29 Evaluated at bid price : 24.45 Bid-YTW : 5.85 % |
| BN.PR.T | FixedReset Disc | 1.15 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-21 Maturity Price : 22.92 Evaluated at bid price : 23.72 Bid-YTW : 6.27 % |
| MFC.PR.B | Insurance Straight | 1.64 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-21 Maturity Price : 21.06 Evaluated at bid price : 21.06 Bid-YTW : 5.59 % |
| PWF.PR.Z | Perpetual-Discount | 1.66 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-21 Maturity Price : 21.82 Evaluated at bid price : 22.06 Bid-YTW : 5.85 % |
| FTS.PR.J | Perpetual-Discount | 2.23 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-21 Maturity Price : 21.73 Evaluated at bid price : 21.98 Bid-YTW : 5.47 % |
| POW.PR.A | Perpetual-Discount | 2.56 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-21 Maturity Price : 24.22 Evaluated at bid price : 24.48 Bid-YTW : 5.75 % |
| CU.PR.G | Perpetual-Discount | 8.42 % | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-21 Maturity Price : 20.60 Evaluated at bid price : 20.60 Bid-YTW : 5.55 % |
| Volume Highlights | |||
| Issue | Index | Shares Traded |
Notes |
| SLF.PR.C | Insurance Straight | 67,200 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-21 Maturity Price : 20.10 Evaluated at bid price : 20.10 Bid-YTW : 5.60 % |
| SLF.PR.D | Insurance Straight | 50,625 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-21 Maturity Price : 20.11 Evaluated at bid price : 20.11 Bid-YTW : 5.59 % |
| PVS.PR.N | SplitShare | 27,600 | YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2033-09-29 Maturity Price : 25.00 Evaluated at bid price : 24.97 Bid-YTW : 5.35 % |
| POW.PR.G | Perpetual-Discount | 14,018 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-21 Maturity Price : 24.17 Evaluated at bid price : 24.43 Bid-YTW : 5.76 % |
| POW.PR.I | Perpetual-Discount | 12,300 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-21 Maturity Price : 24.13 Evaluated at bid price : 24.51 Bid-YTW : 5.79 % |
| GWO.PR.I | Insurance Straight | 12,175 | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2056-10-21 Maturity Price : 19.90 Evaluated at bid price : 19.90 Bid-YTW : 5.72 % |
| There were 2 other index-included issues trading in excess of 10,000 shares. | |||
| Wide Spread Highlights | ||
| See TMX DataLinx: ‘Last’ != ‘Close’ and the posts linked therein for an idea of why these quotes are so horrible. | ||
| Issue | Index | Quote Data and Yield Notes |
| CU.PR.J | Perpetual-Discount | Quote: 21.79 – 26.00 Spot Rate : 4.2100 Average : 2.7985 YTW SCENARIO |
| PWF.PR.L | Perpetual-Discount | Quote: 21.83 – 23.90 Spot Rate : 2.0700 Average : 1.4421 YTW SCENARIO |
| IFC.PR.F | Insurance Straight | Quote: 23.26 – 24.49 Spot Rate : 1.2300 Average : 0.8663 YTW SCENARIO |
| MFC.PR.Q | FixedReset Ins Non | Quote: 25.25 – 26.25 Spot Rate : 1.0000 Average : 0.7148 YTW SCENARIO |
| PWF.PR.E | Perpetual-Discount | Quote: 23.47 – 24.38 Spot Rate : 0.9100 Average : 0.6371 YTW SCENARIO |
| CU.PR.D | Perpetual-Discount | Quote: 22.50 – 23.45 Spot Rate : 0.9500 Average : 0.7455 YTW SCENARIO |