Published on 7/18/2023 in the Prospect News Structured Products Daily.
New Issue: CIBC prices $6 million callable contingent market-linked securities on indexes, ETF
By William Gullotti
Buffalo, N.Y., July 18 – Canadian Imperial Bank of Commerce priced $6 million of market-linked securities – callable with contingent coupon with daily observation and contingent downside due Dec. 30, 2026 linked to the performance of the Nasdaq-100 index, the Russell 2000 index and the SPDR Dow Jones industrial average ETF Trust, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 11.28% if each underlier closes at or above its 65% coupon threshold on every trading day during the observation period.
The notes may be called at par plus any coupon otherwise due on any quarterly observation date.
If the notes are not called and each underlier finishes at or above its coupon threshold, the payout at maturity will be par plus any coupon otherwise due.
If the worst performer finishes below its coupon threshold but at or above its 60% downside threshold, the payout will be par. Otherwise, investors will lose 1% for each 1% decline of the worst performer from its initial level.
Wells Fargo Securities, LLC is the agent.
| Issuer: | Canadian Imperial Bank of Commerce
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| Issue: | Market linked securities – callable with contingent coupon with daily observation and contingent downside
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| Underlying assets: | Nasdaq-100 index, Russell 2000 index, SPDR Dow Jones industrial average ETF Trust
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| Amount: | $6 million
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| Maturity: | Dec. 30, 2026
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| Coupon: | 11.28% annualized, payable quarterly if each underlier closes at or above coupon threshold on every trading day during the observation period
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| Price: | Par
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| Payout at maturity: | Par unless any underlier falls by more than 40%, in which case 1% loss per 1% decline of worst performer from 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: | $343.85 for ETF, 15,179.21 for Nasdaq, 1,888.734 for Russell
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| Coupon thresholds: | $223.5025 for ETF, 9,866.4865 for Nasdaq, 1,227.6771 for Russell; 65% of initial levels
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| Downside thresholds: | $206.31 for ETF, 9,107.526 for Nasdaq, 1,133.2404 for Russell; 60% of initial levels
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| Pricing date: | June 30
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| Settlement date: | July 6
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| Agent: | Wells Fargo Securities, LLC
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| Fees: | 0.775%
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| Cusip: | 13607XK97
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