November 06, 2006 08:59 ET

CIBC To Issue Preferred Shares

TORONTO, ONTARIO--(CCNMatthews - Nov. 6, 2006) -

Not for dissemination into US newswires.

CIBC (TSX:CM)(NYSE:CM) today announced that it had entered into an agreement with a group of underwriters led by CIBC World Markets Inc. for an issue of 16 million non-cumulative Class A preferred shares Series 31 (the "Series 31 Shares") priced at $25.00 per Series 31 Share to raise gross proceeds of $400 million.

CIBC has granted the underwriters an option, exercisable in whole or in part prior to closing, to purchase an additional 2 million Series 31 Shares at the same offering price. Should the underwriters' option be fully exercised, the total gross proceeds of the financing will be $450 million.

The Series 31 Shares will yield 4.70% annually and are redeemable by CIBC, subject to regulatory approval, at a declining premium after approximately five years for cash.

The expected closing date for the issue of the Series 31 Shares is November 15, 2006. The net proceeds of this offering will be used for general purposes of CIBC.

The securities being offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell securities in the United States.

Contact Information

  • CIBC
    Rachel Gauci
    Director, Investor Relations
    (416) 980-8691
    Mary Lou Frazer
    Senior Director, Investor & Financial Communication
    (416) 980-4111