CIBC plans 6.5% one-year STEP Income notes on Facebook via Merrill

By Susanna Moon

Chicago, June 27 – Canadian Imperial Bank of Commerce plans to price 6.5% STEP Income Securities due July 2018 linked to Facebook, Inc. shares, according to an FWP filing with the Securities and Exchange Commission.

Interest is payable quarterly.

If Facebook shares finish at or above the step level – 106.5% of the initial price – the payout at maturity will be par of $10 plus a step payment of 1% to 5%, with the exact amount to be set at pricing.

If the shares gain by up to the step level, the payout at maturity will be par.

Investors will be exposed to any losses.

BofA Merrill Lynch is the agent.

The notes will price in June and settle in July.

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