Published on 7/6/2020 in the Prospect News Structured Products Daily.
New Issue: CIBC prices $1 million contingent coupon autocallable notes on three stocks
By Kiku Steinfeld
Chicago, July 6 – Canadian Imperial Bank of Commerce priced $1 million of contingent coupon autocallable notes July 6, 2022 linked to the lowest performing of the common stocks of United Parcel Service, Inc., CVS Health Corp. and Visa Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 22.2% if each stock closes at or above its 60% coupon barrier on the observation date for that period.
The notes will be called at par plus the contingent coupon if each stock closes at or above its initial level on any quarterly call observation date.
The payout at maturity will be par plus any coupon unless any underlying stock finishes below its 60% final barrier level, in which case investors will receive a number of shares of the least performing stock equal to $1,000 divided by the initial share price or, at the issuer’s option, the cash equivalent.
CIBC World Markets Corp. is the agent.
| Issuer: | Canadian Imperial Bank of Commerce
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| Issue: | Contingent coupon autocallable notes
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| Underlying stocks: | United Parcel Service, Inc., CVS Health Corp. and Visa Inc.
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| Amount: | $1,000,000
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| Maturity: | July 6, 2022
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| Coupon: | 22.2% annualized, payable monthly if each index closes at or above 70% coupon barrier on observation date for that period
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| Price: | Par
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| Payout at maturity: | Par plus coupon unless any stock finishes below barrier, in which case investors will receive a number of shares of the least performing stock equal to $1,000 divided by the initial share price or, at the issuer’s option, the cash equivalent
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| Call: | At par plus coupon if each index closes at or above initial level on any quarterly call observation date
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| Initial levels: | $193.98 for Visa, $110.52 for UPS and $64.02 for CVS
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| Barrier levels: | $116.39 for Visa, $66.31 for UPS and $38.41 for CVS, 60% of initial levels
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| Pricing date: | June 26
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| Settlement date: | July 1
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| Agents: | CIBC World Markets Corp.
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| Fees: | 1.25%
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| Cusip: | 136071BQ9
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