CIBC plans autocallable step-up notes linked to international indexes

By Angela McDaniels

Tacoma, Wash., Feb. 26 – Canadian Imperial Bank of Commerce plans to price 0% autocallable market-linked step-up notes due March 2022 linked to a basket of indexes, according to an FWP filing with the Securities and Exchange Commission.

The basket includes the Euro Stoxx 50 index with a 40% weight, the FTSE 100 index with a 20% weight, the Nikkei Stock Average index with a 20% weight, the Swiss Market index with a 7.5 weight, the S&P/ASX 200 index with a 7.5% weight and the Hang Seng index with a 5% weight.

The notes will be automatically called at par of $10 plus a call premium if the basket closes at or above the initial basket level on either annual observation date. The call premium is expected to be 13% to 14% per year and will be set at pricing.

If the notes are not called and the final basket level is greater than the step-up value, 135% of the initial basket level, the payout at maturity will be par plus the basket return.

If the final basket level is greater than or equal to the initial level but less than or equal to the step-up value, the payout will be par plus the step-up payment, 35%.

If the final basket level is less than the initial level, investors will have one-to-one exposure to the basket’s decline.

BofA Merrill Lynch is the agent.

The notes will price in March and settle in April.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.