Published on 5/9/2022 in the Prospect News Structured Products Daily.
New Issue: CIBC prices $1.27 million autocallable contingent memory coupon notes on financial basket
By William Gullotti
Buffalo, N.Y., May 9 – Canadian Imperial Bank of Commerce priced $1.27 million of autocallable contingent coupon (with memory) notes due Oct. 27, 2023 linked to an equally weighted basket of the stocks of Morgan Stanley, Goldman Sachs Group, Inc. and JPMorgan Chase & Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent quarterly coupon at an annual rate of 16.7% if the basket closes at or above its coupon barrier price, 90% of its initial price, on the corresponding observation date, plus any previously unpaid coupon.
The notes will be called at par plus the coupon if the basket closes at or above its initial level on any quarterly observation date after six months.
If the notes are not called and the final basket level is greater than or equal to the initial basket level, the payout will be par plus the final coupon. Otherwise, investors will be fully exposed to any basket decline.
BofA Securities is the underwriter.
| Issuer: | Canadian Imperial Bank of Commerce
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| Issue: | Autocallable contingent coupon (with memory) notes
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| Underlying basket: | Morgan Stanley (33.34% weight), Goldman Sachs Group, Inc. (33.33% weight), JPMorgan Chase & Co. (33.33% weight)
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| Amount: | $1,269,600
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| Maturity: | Oct. 27, 2023
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| Coupon: | 16.7% annual rate, payable quarterly if basket closes at or above coupon barrier price on the corresponding observation date, plus any previously unpaid coupon
|
| Price: | Par of $10
|
| Payout at maturity: | If final basket level is greater than or equal to initial basket level, par plus final coupon; otherwise, full exposure to basket’s decline
|
| Call: | At par plus coupon if basket closes at or above initial level on any quarterly observation date from after six months
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| Initial levels: | $83.40 for Morgan Stanley, $318.41 for Goldman Sachs, $123.34 for JPMorgan
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| Coupon barrier price: | 90% of initial value
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| Pricing date: | April 28
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| Settlement date: | May 5
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| Underwriter: | BofA Securities
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| Fees: | 1.25%
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| Cusip: | 13607W810
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