{"id":248,"date":"2006-11-06T11:00:30","date_gmt":"2006-11-06T15:00:30","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=248"},"modified":"2006-11-06T11:00:30","modified_gmt":"2006-11-06T15:00:30","slug":"new-issue-cibc-47-perp","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=248","title":{"rendered":"New Issue : CIBC 4.7% Perp"},"content":{"rendered":"<p>Well, it didn&#8217;t take long for CIBC to replace the capital lost via the <a href=\"http:\/\/www.prefblog.com\/?p=246\">redemption of CM.PR.B<\/a>! They <a href=\"http:\/\/www.newswire.ca\/en\/releases\/archive\/November2006\/06\/c0233.html\">announced a new issue<\/a> (with a headline announcing a redemption!) that will close on November 15.<\/p>\n<p>\u00a0Terms of the issue (Class A Series 31) are:<\/p>\n<p>Dividend: Non-cumulative, 4.7% on $25.00 p.v. is $1.1750<\/p>\n<p>Callable:<\/p>\n<ul>\n<li>$26.00, 2012-1-31 &#8211; 2013-1-30<\/li>\n<li>$25.75, 2013-1-31 &#8211; 2014-1-30<\/li>\n<li>$25.50, 2014-1-31 &#8211; 2015-1-30<\/li>\n<li>$25.25, 2015-1-31 &#8211; 2016-1-30<\/li>\n<li>$25.00, 2016-1-31 +<\/li>\n<\/ul>\n<p>DBRS: Pfd-1 (low)<\/p>\n<p>S&#038;P: P-1 (low)<\/p>\n<p>There will be 16-million shares outstanding; underwriters have a greenshoe option for an additional 2-million shares. It&#8217;s a bought deal.<\/p>\n<p>The terms of this issue make it a reasonably close match to CM.PR.H, issued 2005-3-10, paying $1.20, call schedule commencing 2001-3-30, closing 2006-11-3 at $25.80-89<\/p>\n<table border=\"1\">\n<tr>\n<td>\u00a0<\/td>\n<td>CM.PR.H<\/td>\n<td>New Issue<\/td>\n<\/tr>\n<tr>\n<td>Base Rate<\/td>\n<td>24.02<\/td>\n<td>23.83<\/td>\n<\/tr>\n<tr>\n<td>Price due to short-term<\/td>\n<td>0.09<\/td>\n<td>0.10<\/td>\n<\/tr>\n<tr>\n<td>Price due to long-term<\/td>\n<td>0.52<\/td>\n<td>0.48<\/td>\n<\/tr>\n<tr>\n<td>Price due to error<\/td>\n<td>0.02<\/td>\n<td>0.01<\/td>\n<\/tr>\n<tr>\n<td>Price due to Credit Spread (Low)<\/td>\n<td>-0.54<\/td>\n<td>-0.49<\/td>\n<\/tr>\n<tr>\n<td><strong>Intrinsic<\/strong><\/td>\n<td><strong>24.11<\/strong><\/td>\n<td><strong>23.93<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Price due to Liquidity<\/td>\n<td>1.58<\/td>\n<td>1.58?<\/td>\n<\/tr>\n<tr>\n<td><strong>Total<\/strong><\/td>\n<td><strong>$25.69<\/strong><\/td>\n<td><strong>$25.51?<\/strong><\/td>\n<\/tr>\n<\/table>\n<p>Basically, the thing looks pretty good &#8230; priced to move! I&#8217;ll also note that it yields 10bp more (at issue) than the <a href=\"http:\/\/www.prefblog.com\/?p=242\">recently issued RY.PR.C<\/a>, in terms of PRE-TAX DIVIDENDS, which is about right considering that the credit spread for &#8220;Low&#8221; is 11bp AFTER TAX.<\/p>\n<p>This issue has been entered into HIMIPref\u2122 with the temporary security code P50007.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Well, it didn&#8217;t take long for CIBC to replace the capital lost via the redemption of CM.PR.B! They announced a new issue (with a headline announcing a redemption!) that will close on November 15. \u00a0Terms &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[33,17],"tags":[],"class_list":["post-248","post","type-post","status-publish","format-standard","hentry","category-data-fixes","category-new-issues"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/248","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=248"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/248\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=248"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=248"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=248"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}