CIBC plans two-year capped leveraged notes tied to index basket

By Susanna Moon

Chicago, Oct. 4 – Canadian Imperial Bank of Commerce plans to price 0% Capped Leveraged Index Return Notes due October 2018 linked to a basket of three indexes, according to an FWP filing with the Securities and Exchange Commission.

The basket consists of the S&P 500 index with an initial weight of 45%, and the MSCI EAFE index and the MSCI Emerging Markets index each with an initial weight of 27.5%.

The payout at maturity will be par plus double any basket gain, up 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 will price in October and settle in November.

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