Published on 4/12/2019 in the Prospect News Structured Products Daily.
New Issue: CIBC sells $7.88 million market-linked step-up autocallables on index basket
By Marisa Wong
Morgantown, W.Va., April 12 – Canadian Imperial Bank of Commerce priced $7.88 million of autocallable market-linked step-up notes due March 31, 2022 linked to an index basket, according to a 424B2 filed 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 an annual call premium of 14.05% if the basket closes at or above its initial level on any annual call observation date.
If the basket finishes at or above the step-up value – 135% 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 35%.
Investors will be fully exposed to any basket decline.
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: | $7,880,470
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| Maturity: | March 31, 2022
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | If the basket finishes at or above the step-up value – 135% of the initial level – par plus the basket gain; if the index is unchanged or gains by up to the step-up level, par plus 35%; full exposure to any basket decline
|
| Call: | Automatically at an annual call premium of 14.05% if the basket closes at or above its initial level on any annual call observation date
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| Initial index levels: | 3,320.29 for Stoxx, 7,234.33 for FTSE, 21,033.76 for Nikkei, 9,405.93 for Swiss, 6,176.078 for S&P/ASX, 28,775.21 for Hang Seng
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| Pricing date: | March 28
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| Settlement date: | April 4
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| Agent: | BofA Merrill Lynch
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| Fees: | 2%
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| Cusip: | 13607G104
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