Published on 1/12/2018 in the Prospect News Structured Products Daily.
New Issue: CIBC prices $1.09 million contingent coupon autocallables tied to five stocks
By Wendy Van Sickle
Columbus, Ohio, Jan. 12 – Canadian Imperial Bank of Commerce priced $1.09 million of contingent coupon autocallable notes due Jan. 15, 2021 linked to the common stocks of General Electric Co., Wells Fargo & Co., Pfizer Inc., Exxon Mobil Corp. and Target Corp., according to a 424B3 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 12.2% if each stock closes at or above its 70% coupon barrier on the observation date for that period.
The notes will be called at par if each stock closes at or above 90% of its initial level on any call valuation date, the five trading days prior to any coupon date.
The payout at maturity will be par plus the contingent coupon unless any stock finishes below 70% barrier level, in which case investors will be fully exposed to any losses of the laggard fund.
CIBC World Markets Corp. is the underwriter.
| Issuer: | Canadian Imperial Bank of Commerce
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| Issue: | Contingent coupon autocallable notes
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| Underlying stocks: | General Electric Co., Wells Fargo & Co., Pfizer Inc., Exxon Mobil Corp. and Target Corp.
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| Amount: | $1,088,000
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| Maturity: | Jan. 15, 2021
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| Contingent payment: | 12.2% per year, payable each quarter if each stock closes at or above coupon barrier level on observation date for that period
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| Price: | Par
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| Payout at maturity: | Par, unless any stock finishes below barrier price, in which case 1% loss for each 1% decline of the worse performing stock
|
| Call: | Automatically at par if each stock closes at or above 90% of its initial level on any call valuation date, the five trading days prior to any coupon date
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| Initial share prices: | $18.92 for GE, $63.12 for Wells, $36.47 for Pfizer, $86.08 for Exxon, $70.73 for Target
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| Coupon barrier/barrier prices: | $13.244 for GE, $44.184 for Wells, $25.529 for Pfizer, $60.256 for Exxon, $49.511 for Target, 70% of initial share prices
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| Pricing date: | Jan. 10
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| Settlement date: | Jan. 16
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| Agents: | CIBC World Markets Corp.
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| Fees: | 4%
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| Cusip: | 13605WHX2
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