Published on 12/21/2022 in the Prospect News Structured Products Daily.
New Issue: CIBC sells $3.66 million trigger callable contingent yield notes with daily observation
By William Gullotti
Buffalo, N.Y., Dec. 21 – Canadian Imperial Bank of Commerce priced $3.66 million of trigger callable contingent yield notes with daily coupon observation due Dec. 19, 2025 linked to the worst performing of the Dow Jones industrial average, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 13.6% if each index’s closing level is at least 70% of its initial level on every trading day during the observation period.
The notes are callable at par plus any coupon otherwise due on any quarterly observation date.
If the notes have not been called and each index finishes at or above its 70% coupon barrier, the payout at maturity will be par plus any final coupon otherwise due.
If the worst performer finishes below its coupon barrier but at or above its 55% knock-in level, the payout will be par. Otherwise, investors will lose 1% for every 1% that the worst performer finishes below its initial level.
UBS Financial Services Inc. and CIBC Capital Markets are the agents.
| Issuer: | Canadian Imperial Bank of Commerce
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| Issue: | Trigger callable contingent yield notes with daily coupon observation
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| Underlying indexes: | Dow Jones industrial average, Russell 2000 index, S&P 500 index
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| Amount: | $3,655,000
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| Maturity: | Dec. 19, 2025
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| Coupon: | 13.6% per year, payable quarterly if each index closes at or above its coupon barrier level on every trading day during the observation period
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| Price: | Par of $10
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| Payout at maturity: | If each index finishes at or above coupon barrier level, par plus any final coupon otherwise due; par if the worst performer finishes below its coupon barrier but not below knock-in level; otherwise, lose 1% for every 1% that the worst performer finishes below its initial level.
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| Call option: | At par plus any coupon otherwise due on any quarterly observation date
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| Initial levels: | 3,852.36 for S&P, 1,763.42 for Russell, 32,920.46 for Dow
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| Coupon barrier levels: | 2,696.65 for S&P, 1,234.394 for Russell, 23,044.32 for Dow; 70% of initial levels
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| Knock-in levels: | 2,118.8 for S&P, 969.881 for Russell, 18,106.25 for Dow; 55% of initial levels
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| Pricing date: | Dec. 16
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| Settlement date: | Dec. 21
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| Agents: | UBS Financial Services Inc. and CIBC Capital Markets
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| Fees: | 1%
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| Cusip: | 13608K559
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