Published on 6/30/2020 in the Prospect News Structured Products Daily.
New Issue: CIBC sells $9.42 million market-linked step-up autocalls on index basket
By Wendy Van Sickle
Columbus, Ohio, June 30 – Canadian Imperial Bank of Commerce priced $9.42 million of autocallable market-linked step-up notes due June 30, 2023 linked to a basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the Euro Stoxx 50 index with an initial weight of 40%, the FTSE 100 index with an initial weight of 20%, the Nikkei Stock Average index with an initial weight of 20%, the Swiss Market index with an initial weight of 7.5%, the S&P/ASX 200 index with an initial weight of 7.5% and the Hang Seng index with an initial weight of 5%.
The notes will be called at par of $10 plus an annualized call premium of 10.65% if the basket closes at or above the initial level on any annual observation date.
If the notes are not called and the basket finishes above the step-up value, 135% of the initial level, the payout at maturity will be par plus the basket gain.
If the basket finishes at or below the step-up level but at or above the initial level, the payout will be par plus the step-up return of 35%.
Investors will be exposed to any losses.
BofA Securities, Inc. is the agent.
| Issuer: | Canadian Imperial Bank of Commerce
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| Issue: | Autocallable market-linked step-up notes
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| Underlying basket: | Euro Stoxx 50 index (40% weight), FTSE 100 index (20% weight), Nikkei Stock Average index (20% weight), Swiss Market index (7.5% weight), the S&P/ASX 200 index (7.5% weight) and the Hang Seng index (5% weight)
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| Amount: | $9,417,380
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| Maturity: | June 30, 2023
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | If the basket finishes above the step-up level, par plus the basket gain; if the basket gains up to the step-up level, par plus 35%; 1% loss for each 1% decline
|
| Call: | At par plus 10.65% per year if the basket closes at or above its initial level on any annual observation date
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| Initial index levels: | 3,218.91 for Stoxx, 6,147.14 for FTSE, 22,259.79 for Nikkei, 10,089.83 for Swiss, 5,817.676 for S&P/ASX, 24,549.99 for Hang Seng
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| Step-up value: | 135% of initial level
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| Pricing date: | June 25
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| Settlement date: | July 2
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| Underwriter: | BofA Securities, Inc.
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| Fees: | 2%
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| Cusip: | 13607H821
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