CIBC Announces Conversion Privileges of NVCC Preferred Shares Series 41

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/ 

TORONTO, Dec. 12, 2019 /CNW/ - CIBC (TSX: CM) (NYSE: CM) today announced that it does not intend to exercise its right to redeem all or any part of its currently outstanding 12,000,000 Non-cumulative Rate Reset Class A Preferred Shares Series 41 (Non-Viability Contingent Capital (NVCC)) (the "Series 41 Shares") on January 31, 2020.

Subject to certain conditions set out in the prospectus supplement dated December 8, 2014 relating to the issuance of the Series 41 Shares, the holders of Series 41 Shares have the right to convert all or any of their Series 41 Shares, on a one-for-one basis, into Non-cumulative Floating Rate Class A Preferred Shares Series 42 (Non-Viability Contingent Capital (NVCC)) of CIBC (the "Series 42 Shares") on January 31, 2020.

On such date, holders who do not exercise their right to convert their Series 41 Shares into Series 42 Shares, will continue to hold their Series 41 Shares. The foregoing conversion rights are subject to the following:

• if CIBC determines that there would remain outstanding less than 1,000,000 Series 42 Shares, after having taken into account all Series 41 Shares tendered for conversion on January 31, 2020, then holders of Series 41 Shares will not be entitled to convert their shares into Series 42 Shares, and
  
  
• alternatively, if CIBC determines that there would remain outstanding less than 1,000,000 Series 41 Shares, after having taken into account all Series 41 Shares tendered for conversion on January 31, 2020, then all, but not part, of the remaining outstanding Series 41 Shares will automatically be converted into Series 42 Shares on a one-for-one basis on January 31, 2020.

In either case, CIBC will give written notice to that effect to the registered holder of Series 41 Shares no later than January 24, 2020.

The dividend rate applicable to the Series 41 Shares, should any remain outstanding after January 31, 2020, for the five-year period from and including January 31, 2020 to but excluding January 31, 2025, and the dividend rate applicable to the Series 42 Shares, should any be issued, for the three-month period from and including January 31, 2020 to but excluding April 30, 2020, as and when declared by the Board of Directors of CIBC, will be calculated and announced on December 31, 2019.  CIBC has designated the Series 42 Shares as eligible to participate in the CIBC Shareholder Investment Plan.

Beneficial owners of Series 41 Shares who wish to excise their conversion right should instruct their broker or other nominee to exercise such right during the conversion period, which runs from January 1, 2020 until 5:00 p.m. (Eastern Standard Time) on January 16, 2020. It is recommended that this be done well in advance of the deadline in order to provide the broker or other nominee time to complete the necessary steps. Any notices received after this deadline will not be valid.

About CIBC

CIBC is a leading North American global financial institution with 10 million personal banking, business, public sector and institutional clients. Across Personal and Small Business Banking, Commercial Banking and Wealth Management, and Capital Markets businesses, CIBC offers a full range of advice, solutions and services through its leading digital banking network, and locations across Canada, in the United States and around the world. Ongoing news releases and more information about CIBC can be found at https://www.cibc.com/en/about-cibc/media-centre.html

SOURCE CIBC