Published on 8/22/2023 in the Prospect News Structured Products Daily.
New Issue: CIBC prices $6.98 million trigger callable contingent yield notes tied to three indexes
By William Gullotti
Buffalo, N.Y., Aug. 22 – Canadian Imperial Bank of Commerce priced $6.98 million of trigger callable contingent yield notes due Feb. 23, 2027 linked to the worst performing of the Nasdaq-100 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 9.75% if each index’s closing level is at least 70% of its initial level on the relevant observation date.
After six months, the notes may be called at par plus any coupon otherwise due on any quarterly observation date.
If the notes have not been called and each index finishes at or above its 70% coupon barrier, the payout at maturity will be par plus the final coupon.
If the worst performer finishes below its coupon barrier but at or above its 60% knock-in level, the payout will be par. Otherwise, investors will lose 1% for every 1% that the worst performer finishes below its initial level.
UBS Financial Services Inc. and CIBC Capital Markets are the agents.
| Issuer: | Canadian Imperial Bank of Commerce
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| Issue: | Trigger callable contingent yield notes
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| Underlying indexes: | Nasdaq-100 index, Russell 2000 index, S&P 500 index
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| Amount: | $6,975,000
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| Maturity: | Feb. 23, 2027
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| Coupon: | 9.75% per year, payable quarterly if each index closes at or above its coupon barrier level on the relevant observation date
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| Price: | Par of $10
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| Payout at maturity: | If each index finishes at or above coupon barrier level, par plus final coupon; par if the worst performer finishes below its coupon barrier but not below knock-in level; otherwise, lose 1% for every 1% that the worst performer finishes below its initial level.
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| Call option: | At par plus any coupon otherwise due on any quarterly observation date after six months
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| Initial levels: | 4,370.36 for S&P, 1,850.058 for Russell, 14,715.81 for Nasdaq
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| Coupon barrier levels: | 3,059.25 for S&P, 1,295.041 for Russell, 10,301.07 for Nasdaq; 70% of initial levels
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| Knock-in levels: | 2,622.22 for S&P, 1,110.035 for Russell, 8,829.49 for Nasdaq; 60% of initial levels
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| Strike date: | Aug. 17
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| Pricing date: | Aug. 18
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| Settlement date: | Aug. 23
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| Agents: | UBS Financial Services Inc. and CIBC Capital Markets
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| Fees: | 2%
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| Cusip: | 13608M357
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