Published on 3/30/2006 in the Prospect News Convertibles Daily.
New Issue: CIBC sells $4 million notes linked to 10 large-cap U.S. stocks
By Angela McDaniels
Seattle, March 30 - Canadian Imperial Bank of Commerce sold $4 million of Equity Target Premium Yield Generator Notes linked to a basket of 10 large-cap U.S. stocks, according to a 424B5 filing with the Securities and Exchange Commission.
The 10 underlying stocks are Altria Group Inc., Apple Computer Inc., The Boeing Co., The Coca-Cola Co., Exxon Mobil Corp., McDonald's, NIKE Inc., Pfizer Inc., Sprint Nextel Corp. and United Parcel Service Inc., equally weighted
The annual coupon on the notes is the average of the returns on each stock since the pricing date, capped at 10%. The coupon has a floor of zero.
At maturity, the notes pay par.
The notes will be redeemed automatically at par if the coupon payments reach 17% since issuance.
CIBC said it will apply to list the notes on the American Stock Exchange under the symbol "MRS.Y."
| Issuer: | Canadian Imperial Bank of Commerce
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| Issue: | Equity Target Premium Yield Generator Notes
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| Amount: | $4 million
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| Underlying basket: | Altria Group Inc., Apple Computer Inc., The Boeing Co., The Coca-Cola Co., Exxon Mobil Corp., McDonald's, NIKE Inc., Pfizer Inc., Sprint Nextel Corp. and United Parcel Service Inc., equally weighted
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| Maturity: | April 1, 2013
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| Coupon: | 8% for the first coupon, then the average return on the 10 stocks since issuance; each individual stock return is capped at 10%, the average has a floor of 0%
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| Price: | Par
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| Payout at maturity: | Par
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| Call: | Automatically called after March 31, 2008 if sum of coupon payments equals 17%
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| Pricing date: | March 28
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| Settlement date: | March 31
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| Agent: | CIBC World Markets
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| Listing: | "MRS.Y" on American Stock Exchange
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