Published on 1/4/2019 in the Prospect News Structured Products Daily.
New Issue: CIBC sells $11.22 million autocallable market-linked notes tied to index basket
Chicago, Jan. 4 – Canadian Imperial Bank of Commerce priced $11.22 of 0% autocallable market-linked step-up notes due Dec. 21, 2023 linked to an international equity index basket, 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 plus an annual call premium of 10.6% if the basket closes at or above its initial level on an annual call observation date.
If the basket finishes at or above the step-up value – 150% of the initial level – the payout at maturity will be par of $10 plus the basket gain.
If the index is unchanged or gains by up to the step-up level, the payout will be par plus the step-up payment of 50%.
Investors will receive par if the basket declines by up to 15% and will lose 1% for each 1% decline of the basket beyond 15%.
BofA Merrill Lynch 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), S&P/ASX 200 index (7.5% weight), and Hang Seng index (5% weight)
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Amount: | $11,223,620.00
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Maturity: | Dec. 21, 2023
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Coupon: | 0%
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Price: | Par of $10
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Call: | At par plus a call premium of 10.6% per year if the index closes at or above initial level on Dec. 27, 2019, Dec. 17, 2020, Dec. 16, 2021 or Dec. 15, 2022
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Payout at maturity: | If above 150% of initial level, return of basket; if positive and below 150% of initial level par plus 50%, if the final index falls by up to 15%, par; 1% loss for each 1% decline beyond 15%
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Initial levels: | 3,000.06 for Euro Stoxx 50, 6,711.93 for FTSE 100 index, 20,392.58 for Nikkei Stock Average, 8,414.48 for Swiss Market, 5,505.822 for S&P/ASX 200 and 25,623.53 for Hang Seng
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Pricing date: | Dec. 20
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Settlement date: | Dec. 28
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Agent: | BofA Merrill Lynch
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Fees: | 2%
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Cusip: | 13606M276
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