{"id":5159,"date":"2009-01-26T12:09:40","date_gmt":"2009-01-26T16:09:40","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=5159"},"modified":"2009-01-26T12:09:40","modified_gmt":"2009-01-26T16:09:40","slug":"new-issue-cibc-fixed-reset-650447","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=5159","title":{"rendered":"New Issue: CIBC Fixed-Reset 6.50%+447"},"content":{"rendered":"

CIBC has announced<\/a>:<\/p>\n

that it had entered into an agreement with a group of underwriters led by CIBC World Markets Inc. for an issue of 8 million non-cumulative Rate Reset Class A Preferred Shares, Series 35 (the “Series 35 Shares”) priced at $25.00 per Series 35 Share to raise gross proceeds of $200 million.<\/p>\n

CIBC has granted the underwriters an option, exercisable in whole or in part prior to closing, to purchase an additional 3 million Series 35 Shares at the same offering price. Should the underwriters’ option be fully exercised, the total gross proceeds of the financing will be $275 million.<\/p>\n

The Series 35 Shares will yield 6.5% per annum, payable quarterly, as and when declared by the Board of Directors of CIBC, for an initial period ending April 30, 2014. On April 30, 2014 and on April 30 every five years thereafter, the dividend rate will reset to be equal to the then current five-year Government of Canada bond yield plus 4.47%.<\/p>\n

Holders of the Series 35 Shares will have the right to convert their shares into non-cumulative Floating Rate Class A Preferred Shares, Series 36 (the “Series 36 Shares”), subject to certain conditions, on April 30, 2014 and on April 30 every five years thereafter. Holders of the Series 36 Shares will be entitled to receive a quarterly floating rate dividend, as and when declared by the Board of Directors of CIBC, equal to the three-month Government of Canada Treasury Bill yield plus 4.47%.<\/p>\n

Holders of the Series 36 Shares may convert their Series 36 Shares into Series 35 Shares, subject to certain conditions, on April 30, 2019 and on April 30 every five years thereafter.<\/p>\n

The expected closing date is February 4, 2009. The net proceeds of this offering will be used for general purposes of CIBC.<\/p><\/blockquote>\n

Update, 2009-2-3<\/b>: CIBC announced on January 27<\/a>:<\/p>\n

that as a result of strong investor demand for its domestic public offering of non-cumulative Rate Reset Class A Preferred Shares, Series 35 (the “Series 35 Shares”), the size of the offering has been increased to 10 million shares. The gross proceeds of the offering will now be $250 million.<\/p>\n

In addition, CIBC has granted the underwriters an option, exercisable in whole or in part prior to closing, to purchase up to an additional 3 million Series 35 Shares at a price of $25.00 per share. Should the underwriters’ option be fully exercised, the total gross proceeds of the financing will be $325 million. <\/p><\/blockquote>\n

The issue is set to close tomorrow and trade with the symbol CM.PR.L
\nThe first dividend will be payable April 28 for $0.37842 based on closing Feb. 4<\/p>\n","protected":false},"excerpt":{"rendered":"

CIBC has announced: that it had entered into an agreement with a group of underwriters led by CIBC World Markets Inc. for an issue of 8 million non-cumulative Rate Reset Class A Preferred Shares, Series …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17],"tags":[],"class_list":["post-5159","post","type-post","status-publish","format-standard","hentry","category-new-issues"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/5159","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=5159"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/5159\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5159"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5159"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5159"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}