CM.PR.Y – Series 51 Prospectus – CIBC Preferred Shares

The following is a  set of excerpts from the prospectus document for the Non-cumulative 5-Year Rate Reset Preferred Shares Series 51 (Non-Viability Contingent Capital (NVCC)). The excerpts, highlight the most relevant information, an investor should know when analyzing this preferred. A link to the prospectus is provided lower in this page.  The original document for CM.PR.Y – Series 51 Prospectus – CIBC Preferred Shares was used for the excerpts and the important information was highlighted for quick access.

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Excerpt: Size and initial yield

May 27, 2019 Canadian Imperial Bank of Commerce $250,000,000 (10,000,000 Shares) Non-cumulative Rate Reset Class A Preferred Shares Series 51 (Non-Viability Contingent Capital (NVCC)) The holders of Non-cumulative Rate Reset Class A Preferred Shares Series 51 (Non-Viability Contingent Capital (NVCC)) (the “Series 51 Shares”) of Canadian Imperial Bank of Commerce (“CIBC” or the “Bank”) will be entitled to receive fixed non-cumulative preferential cash dividends, as and when declared by the board of directors of CIBC (the “Board of Directors”), for the initial period from and including the closing date of this offering to but excluding July 31, 2024 (the “Initial Fixed Rate Period”) payable quarterly on the 28th day of January, April, July and October at an annual rate of 5.15%. Such quarterly cash dividends, if declared, will be $0.321875 per share. The initial dividend, if declared, will be payable on October 28, 2019 and will be $0.52558 per share based on the anticipated closing date of June 4, 2019. See “Details of the Offering”.

Excerpt: Reset Date and Yield Terms

For each five-year period after the Initial Fixed Rate Period (each a “Subsequent Fixed Rate Period”), the holders of Series 51 Shares will be entitled to receive fixed non-cumulative preferential cash dividends, as and when declared by the Board of Directors, payable quarterly on the 28th day of January, April, July and October in each year, in the amount per share determined by multiplying the Annual Fixed Dividend Rate (as defined herein) applicable to such Subsequent Fixed Rate Period by $25.00 and dividing the result so obtained by four. The Annual Fixed Dividend Rate for each Subsequent Fixed Rate Period will be determined by CIBC on the 30th day prior to the first day of such Subsequent Fixed Rate Period and will be equal to the sum of the Government of Canada Yield (as defined herein) on the date on which the Annual Fixed Dividend Rate is determined plus 3.62%. See “Details of the Offering”.

Excerpt: Conversion Terms

Option to Convert Into Series 52 Shares Subject to CIBC’s right to redeem all of the Series 51 Shares, the holders of Series 51 Shares will have the right, at their option, to convert their Series 51 Shares into Non-cumulative Floating Rate Class A Preferred Shares Series 52 (Non-Viability Contingent Capital (NVCC)) of CIBC (the “Series 52 Shares”), subject to certain conditions, on July 31, 2024 and on July 31st every five years thereafter. The holders of Series 52 Shares will be entitled to receive floating rate non-cumulative preferential cash dividends, as and when declared by the Board of Directors, payable quarterly on the 28th day of January, April, July and October in each year (the initial quarterly dividend period and each subsequent quarterly dividend period is referred to as a “Quarterly Floating Rate Period”), in the amount per share determined by multiplying the applicable Floating Quarterly Dividend Rate (as defined herein) by $25.00, calculated on the basis of the actual number of days elapsed in the applicable Quarterly Floating Rate Period divided by 365. The Floating Quarterly Dividend Rate will be equal to the sum of the T-Bill Rate (as defined herein) plus 3.62% determined on the 30th day prior to the first day of the applicable Quarterly Floating Rate Period. See “Details of the Offering”

CM.PR.Y – Series 51 Prospectus – CIBC Preferred Shares. Original Document

I have presented the most important information regarding the Series 51 preferreds. If you need to go through the original and complete document for CM.PR.Y – Series 51 Prospectus – CIBC Preferred Shares is available here.