CIBC said today it has signed a letter of intent under which Oppenheimer Holdings Inc. will repurchase debentures that were issued as part of the 2003 purchase of Oppenheimer by Fahnestock Viner Holdings Inc.

CIBC will be paid US$161 million, representing the face value of the debentures, plus accrued interest. The transaction will have no earnings impact to CIBC and is expected to close by July 31.

Oppenheimer has also agreed to make a contingent payment to CIBC if prior to Dec/ 31, 2007, Oppenheimer enters into an agreement for the sale of the company or substantially all of its assets. The amount of the contingent payment would be based on the price per share realized by Oppenheimer shareholders in any such transaction.

Fahnestock acquired Oppenheimer from CIBC in January 2003.