CIBC plans capped Leveraged Index Return Notes linked to index basket

By Tali Rackner

Norfolk, Va., Sept. 1 – Canadian Imperial Bank of Commerce plans to price 0% capped Leveraged Index Return Notes due September 2018 tied to a basket of indexes, according to an FWP filing with the Securities and Exchange Commission.

The basket contains the S&P 500 index with a 45% weight, the MSCI EAFE index with a 27.5% weight and the MSCI Emerging Markets index with a 27.5% weight.

The payout at maturity will be par of $10 plus double any basket gain, subject to a maximum return of 13% to 17%. The exact cap will be set at pricing.

Investors will receive par if the basket falls by up to 10% and will lose 1% for every 1% decline beyond 10%.

BofA Merrill Lynch is the agent.

The notes are expected to price in September and settle in October.

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