CIBC plans two-year market-linked step-up notes tied to index basket

By Susanna Moon

Chicago, Oct. 23 – Canadian Imperial Bank of Commerce plans to price market-linked step-up notes due October 2020 linked to a basket of indexes, according to an FWP 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%.

If the index finishes at or above the step-up value – 126% to 132% of the initial level – the payout at maturity will be par of $10 plus the index gain.

If the index gains by up to the step-up level, the payout will be par plus the step-up payment of 26% to 32%.

Otherwise, investors will lose 1% for each 1% decline.

BofA Merrill Lynch is the agent.

The notes will price in October and settle in November.

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