Published on 3/19/2020 in the Prospect News Structured Products Daily.
New Issue: CIBC sells $7.51 million market-linked step-up autocalls on index basket
By Sarah Lizee
Olympia, Wash., March 19 – Canadian Imperial Bank of Commerce priced $7.51 million of autocallable market-linked step-up notes due March 30, 2023 linked to a basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the Euro Stoxx 50 index with an initial weight of 40%, the FTSE 100 index with an initial weight of 20%, the Nikkei Stock Average index with an initial weight of 20%, the Swiss Market index with an initial weight of 7.5%, the S&P/ASX 200 index with an initial weight of 7.5% and the Hang Seng index with an initial weight of 5%.
The notes will be called at par of $10 plus an annualized call premium of 14.8% if the basket closes at or above the initial level on any annual observation date.
If the notes are not called and the basket finishes above the step-up value, 130% of the initial level, the payout at maturity will be par plus the basket gain.
If the basket finishes at or below the step-up level but at or above the initial level, the payout will be par plus the step-up return of 30%.
Investors will be exposed to any losses.
BofA Securities, Inc. is the agent.
Issuer: | Canadian Imperial Bank of Commerce
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Issue: | Autocallable market-linked step-up notes
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Underlying basket: | Euro Stoxx 50 index (40% weight), FTSE 100 index (20% weight), Nikkei Stock Average index (20% weight), Swiss Market index (7.5% weight), the S&P/ASX 200 index (7.5% weight) and the Hang Seng index (5% weight)
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Amount: | $7,511,150
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Maturity: | March 30, 2023
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Coupon: | 0%
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Price: | Par of $10
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Payout at maturity: | If the basket finishes above the step-up level, par plus the basket gain; if the basket gains up to the step-up level, par plus 30%; 1% loss for each 1% decline
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Call: | At par plus 14.8% per year if the basket closes at or above its initial level on any annual observation date
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Initial index levels: | 2,545.23 for Stoxx, 5,237.48 for FTSE, 18,559.63 for Nikkei, 8,270.44 for Swiss, 5,304.628 for S&P/ASX, 24,309.07 for Hang Seng
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Step-up value: | 130% of initial level
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Pricing date: | March 12
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Settlement date: | March 19
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Underwriter: | BofA Securities, Inc.
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Fees: | 2%
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Cusip: | 13607G187
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