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CIBC elects not to call series 41 preferreds; holders may convert
By Marisa Wong
Los Angeles, Dec. 12 – Canadian Imperial Bank of Commerce announced that it does not intend to exercise its right to redeem all or any part of its currently outstanding 12 million non-cumulative rate reset class A preferred shares, series 41, on Jan. 31.
Holders of the series 41 preferred shares have the right to convert all or any of their preferred shares on a one-for-one basis into non-cumulative floating-rate class A preferred shares, series 42, on Jan. 31.
Holders who do not exercise their right to convert their preferreds will continue to hold their series 41 preferreds.
If CIBC determines that there would remain outstanding less than 1 million series 42 preferreds, after having taken into account all series 41 preferreds tendered for conversion, then holders of series 41 preferreds will not be entitled to convert their preferreds.
Alternatively, if CIBC determines that there would remain outstanding less than 1 million of series 41 preferreds, after having taken into account all series 41 preferreds tendered for conversion, then all but not part of the remaining outstanding series 41 preferreds will automatically be converted into series 42 preferreds on a one-for-one basis on Jan. 31.
The Toronto-based bank’s shares closed at C$108.84 (Toronto: CM) on Wednesday.
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