Published on 10/10/2019 in the Prospect News Structured Products Daily.
New Issue: CIBC prices $17.27 million autocallable market-linked step-up notes on index basket
By Kiku Steinfeld
Chicago, Oct. 10 – Canadian Imperial Bank of Commerce priced $17.27 million of 0% autocallable market-linked step-up notes due Sept. 26, 2024 tied 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 and the Nikkei Stock Average index each with an initial weight of 20%, the Swiss Market index and the S&P/ASX 200 index each 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 a call premium if the basket closes at or above its initial level on any of four annual observation dates. The call premium is $10.86 if the notes are called on Sept. 30, 2020, $11.72 if called on Sept. 16, 2021, $12.58 if called on Sept. 22, 2022 and $13.44 if called on Sept. 21, 2023 (8.6% annual rate).
If the basket finishes above the step-up value, 150% of the initial value, the payout at maturity will be par plus the basket return.
If the basket finishes flat or increases up to the step-up value, the payout will be par plus the step-up payment of 50%.
The payout will be par if the basket falls by up to 15%.
Investors will be exposed to any decline of the basket beyond 15% of its initial level.
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 indexes: | Euro Stoxx 50 (40% weight), FTSE 100 and Nikkei Stock (20% weight), Swiss Market and S&P/ASX 200 (7.5% weight each) and Hang Seng (5% weight)
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| Amount: | $17,270,990
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| Maturity: | Sept. 26, 2024
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | If basket finishes above step-up value, par plus basket return; if basket finishes flat or increases up to step-up value, par plus 50%; par if basket declines by up to 15%; full exposure to any decline beyond 15%
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| Call: | Automatically at par plus a premium; $10.86 if called on Sept. 30, 2020, $11.72 if called on Sept. 6, 2021, $12.58 if called on Sept. 22, 2022 and $13.44 if called on Sept. 21, 2023
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| Initial levels: | 3,532.18 for Stoxx, 7,351.08 for FTSE, 22,048.24 for Nikkei, 10,010.71 for Swiss, 6,677.581 for S&P/ASX, 26,041.93 for Hang Seng
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| Step-up value: | 150% of initial value
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| Pricing date: | Sept. 26
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| Settlement date: | Oct. 3
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| Agent: | BofA Securities, Inc.
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| Fees: | 2%
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| Cusip: | 13607G559
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