Published on 9/28/2017 in the Prospect News Structured Products Daily.
New Issue: CIBC prices $1.89 million contingent coupon autocallables tied to two ETFs
By Wendy Van Sickle
Columbus, Ohio, Sept. 28 – Canadian Imperial Bank of Commerce priced $1.89 million of contingent coupon autocallable notes due Sept. 29, 2022 linked to the SPDR S&P Oil & Gas Exploration & Production ETF and the VanEck Vectors Gold Miners ETF, according to a 424B3 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 12% if each fund closes at or above its 60% coupon barrier on the observation date for that period.
The notes will be called at par if either fund closes at or above its initial level on any call valuation date, the five trading days prior to any March or September coupon date, after one year.
The payout at maturity will be par plus the contingent coupon unless either fund finishes below its 60% barrier level, in which case investors will be fully exposed to any losses of the laggard fund.
Jefferies LLC is the underwriter.
| Issuer: | Canadian Imperial Bank of Commerce
|
| Issue: | Contingent coupon autocallable notes
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| Underlying ETF: | VanEck Vectors Gold Miners and SPDR S&P Oil & Gas Exploration & Production
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| Amount: | $1,892,000
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| Maturity: | Sept. 29, 2022
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| Contingent payment: | 12% per year, payable each quarter if each ETF closes at or above coupon barrier level on observation date for that period
|
| Price: | Par
|
| Payout at maturity: | Par, unless either ETF finishes below barrier price, in which case 1% loss for each 1% decline of the worse performing fund
|
| Call: | Automatically at par if each fund closes at or above its initial level on any call valuation date, the five trading days prior to any March or September coupon date, after one year
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| Initial share prices: | $24.26 for Gold Miners, $29.58 for Oil & Gas
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| Coupon barrier/barrier prices: | $14.01 for Gold Miners, $20.472 for Oil & Gas, 60% of initial share prices
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| Pricing date: | Sept. 26
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| Settlement date: | Sept. 29
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| Agents: | Jefferies LLC
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| Fees: | 4%
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| Cusip: | 13605WFP1
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