Published on 8/31/2023 in the Prospect News Structured Products Daily.
New Issue: CIBC sells $5.85 million issuer callable contingent coupon barrier notes on indexes, ETF
By William Gullotti
Buffalo, N.Y., Aug. 31 – Canadian Imperial Bank of Commerce priced $5.85 million issuer callable contingent coupon barrier notes due Aug. 26, 2025 tied to the SPDR Dow Jones Industrial Average ETF Trust, the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly contingent coupon at an annual rate of 10.32% if all underliers close at or above their 70% coupon barrier on the corresponding observation date.
After three months, the notes may be called at par plus any coupon due at the option of the issuer on any monthly coupon payment date.
Investors will receive par plus the contingent coupon if the final level of the least performing underlier is greater than or equal to its coupon barrier.
If the worst performer finishes below the coupon barrier but at or above the 60% trigger level, the payout at maturity will be par. Otherwise, investors will be fully exposed to the worst performer’s decline from its initial level.
CIBC World Markets Corp. is the agent.
| Issuer: | Canadian Imperial Bank of Commerce
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| Issue: | Issuer callable contingent coupon barrier note
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| Underlying assets: | S&P 500 index, SPDR Dow Jones Industrial Average ETF Trust, Russell 2000 index
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| Amount: | $5,849,000
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| Maturity: | Aug. 26, 2025
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| Coupon: | 10.32% per year, paid monthly if all underliers close at or above their respective coupon barriers on the relevant observation date
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| Price: | Par
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| Payout at maturity: | Par plus contingent coupon if each underlier finishes at or above coupon barrier level; if the worst performer finishes below its coupon barrier but at or above trigger level, par; otherwise, full exposure to decline of worst performer from its initial level
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| Call option: | At par plus any coupon due at the option of the issuer on any monthly coupon payment date after three months
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| Initial levels: | $344.67 for ETF, 4,399.77 for S&P, 1,856.014 for Russell
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| Coupon barrier levels: | $241.27 for ETF, 3,079.84 for S&P, 1,299.21 for Russell; 70% of initial levels
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| Trigger levels: | $206.80 for ETF, 2,639.86 for S&P, 1,113.608 for Russell; 60% of initial levels
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| Pricing date: | Aug. 21
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| Settlement date: | Aug. 24
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| Agent: | CIBC World Markets Corp.
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| Fees: | 0.25%
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| Cusip: | 13607XMP9
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