CIBC Announces $750M Fixed-Rate Reset Limited Recourse Capital Notes Series 7

Canadian Imperial Bank of Commerce (CIBC) plans to issue $750 million worth of fixed-rate reset limited recourse capital notes series 7. The notes will have an annual interest rate of 7.000% payable quarterly for the initial period ending October 2027.

Canadian Imperial Bank of Commerce (CIBC) has announced a public offering of US$750 million in 7.000% Fixed Rate Reset Limited Recourse Capital Notes Series 7 (Non-Viability Contingent Capital (NVCC)). The notes, referred to as LRCNs, will bear interest at a rate of 7.000% annually, payable quarterly, for the initial period ending on, but excluding, October 28, 2030 [1].

The LRCNs will then reset every five years at a rate equal to the prevailing 5-year U.S. Treasury Rate plus 3.000% [1]. The maturity date for the notes is October 28, 2085 [1]. CIBC expects the offering to close on July 14, 2025 [1].

In conjunction with the issuance of the LRCNs, CIBC will issue Non-Cumulative 5-Year Fixed Rate Reset Class A Preferred Shares Series 62 (NVCC) to be held by Computershare Trust Company of Canada as trustee of CIBC LRCN Limited Recourse Trust [1]. In the event of non-payment of interest or principal, the recourse of each LRCN holder will be limited to their proportionate share of the Limited Recourse Trust's assets held in respect of the LRCNs [1].

CIBC has the option to redeem the LRCNs on specified dates with the prior written approval of the Superintendent of Financial Institutions (Canada). The redemption can occur in whole or in part on not less than 10 days' nor more than 60 days' prior notice [1].

The proceeds from the sale of the LRCNs will be used for general corporate purposes, including the redemption of outstanding capital securities and the repayment of other liabilities [1]. 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 [1].

This press release is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any of these securities [1]. Investors interested in obtaining the prospectus supplement and accompanying base prospectus can do so by visiting the SEC's EDGAR website at www.sec.gov or by contacting the joint book-running managers [1].

References:
[1] https://finance.yahoo.com/news/cibc-issue-7-000-nvcc-164200055.html