(January 15 – 11:00 ET) – CIBC today announced that it has entered into an underwriting agreement for a new non-cumulative preferred share issue in Canadian funds.

The new issue will consist of a minimum of 12 million Non-cumulative Class A Preferred Shares Series 23 priced at $25 per share to yield 5.30% annually.

Subject to agreement between CIBC and its underwriters, CIBC may issue up to 4 million additional Series 23 preferred shares until closing under the same terms.

The shares will be redeemable by CIBC subject to regulatory approval, at a declining premium after approximately 6.75 years for cash or for common shares of CIBC at 95% of the then market price of the common shares.

The shares will also be convertible by the holder into CIBC common shares after approximately 10.5 years at 95% of the then market price, subject to CIBC’s prior right to redeem for cash.

CIBC World Markets Inc. leads the group of investment dealers underwriting the offering. The expected closing date for the issue is January 31.

According to the bank, the net proceeds of this issue will be used increase Tier 1 capital.
-IE Staff