CIBC Announces US$750 Mln Offering Of 7.000% Fixed Rate Reset LRCNs Series 7

Canadian Imperial Bank of Commerce

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(RTTNews) - CIBC (CM, CM.TO) announced the public offering in the United States of US$750 million of 7.000% Fixed Rate Reset Limited Recourse Capital Notes Series 7 (Non-Viability Contingent Capital (NVCC)) or the "LRCNs".

The LRCNs will bear interest at a rate of 7.000% annually, payable quarterly, for the initial period ending on, but excluding, October 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 3.000%. The LRCNs will mature on October 28, 2085. The expected closing date of the offering is July 14, 2025.

CIBC said it will issue Non-Cumulative 5-Year Fixed Rate Reset Class A Preferred Shares Series 62 Non-Viability Contingent Capital (NVCC) to be held by Computershare Trust Company of Canada as trustee of CIBC LRCN 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 62 Shares except in limited circumstances.

CIBC said it may redeem the LRCNs on October 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.

CIBC said it expects to use the net proceeds from the sale of the LRCNs 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., Barclays Capital Inc., BofA Securities, Inc., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC.