/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
TORONTO, June 12, 2020 /CNW/ - CIBC (TSX: CM)
(NYSE: CM) today announced that it does not intend to exercise its
right to redeem all or any part of its currently outstanding
12,000,000 Non-cumulative Rate Reset Class A Preferred Shares
Series 43 (Non-Viability Contingent Capital (NVCC)) (the "Series 43
Shares") on July 31, 2020.
Subject to certain conditions set out in the prospectus
supplement dated February 27, 2015
relating to the issuance of the Series 43 Shares, the holders of
Series 43 Shares have the right to convert all or any of their
Series 43 Shares, on a one-for-one basis, into Non-cumulative
Floating Rate Class A Preferred Shares Series 44 (Non-Viability
Contingent Capital (NVCC)) of CIBC (the "Series 44 Shares") on
July 31, 2020.
On such date, holders who do not exercise their right to convert
their Series 43 Shares into Series 44 Shares, will continue to hold
their Series 43 Shares. The foregoing conversion rights are subject
to the following:
- if CIBC determines that there would remain outstanding less
than 1,000,000 Series 44 Shares, after having taken into account
all Series 43 Shares tendered for conversion on July 31, 2020, then holders of Series 43 Shares
will not be entitled to convert their shares into Series 44 Shares,
and
- alternatively, if CIBC determines that there would remain
outstanding less than 1,000,000 Series 43 Shares, after having
taken into account all Series 43 Shares tendered for conversion on
July 31, 2020, then all, but not
part, of the remaining outstanding Series 43 Shares will
automatically be converted into Series 44 Shares on a one-for-one
basis on July 31, 2020.
In either case, CIBC will give written notice to that effect to
the registered holder of Series 43 Shares no later than
July 24, 2020.
The dividend rate applicable to the Series 43 Shares, should any
remain outstanding after July 31,
2020, for the five-year period from and including
July 31, 2020 to but excluding
July 31, 2025, and the dividend rate
applicable to the Series 44 Shares, should any be issued, for the
three-month period from and including July
31, 2020 to but excluding October 31,
2020, as and when declared by the Board of Directors of
CIBC, will be calculated and announced on June 30, 2020. CIBC has designated the
Series 44 Shares as eligible to participate in the CIBC Shareholder
Investment Plan.
Beneficial owners of Series 43 Shares who wish to excise their
conversion right should instruct their broker or other nominee to
exercise such right during the conversion period, which runs from
July 1, 2020 until 5:00 p.m. (Eastern Standard Time) on July 16, 2020. It is recommended that this be
done well in advance of the deadline in order to provide the broker
or other nominee time to complete the necessary steps. Any notices
received after this deadline will not be valid.
About CIBC
CIBC is a leading North American financial institution with 10
million personal banking, business, public sector and institutional
clients. Across Personal and Business Banking, Commercial Banking
and Wealth Management, and Capital Markets businesses, CIBC offers
a full range of advice, solutions and services through its leading
digital banking network, and locations across Canada, in
the United States and around the world. Ongoing news releases
and more information about CIBC can be found
at https://www.cibc.com/en/about-cibc/media-centre.html
SOURCE CIBC