CIBC Sells $530K Barrier Notes Tied to AVGO, ABT, KLAC
The Canadian Imperial Bank of Commerce (CIBC) announced the sale of $530,000 in Contingent Coupon Barrier Notes. These notes are linked to the common stock of three companies: Broadcom Inc. (AVGO), Abbott Laboratories (ABT), and KLA Corporation (KLAC). They are set to mature on February 26, 2029, with an issuance date of March 2, 2026.
Details of the Barrier Notes
The notes will provide monthly contingent coupon payments of $11.642 for each $1,000 invested. This equates to an annual yield of approximately 13.97%. However, these payments are contingent upon the performance of the worst-performing stock among the three references.
Coupon Payments and Conditions
- Coupon Barrier Price: Payments will be made if the closing price of the worst-performing stock either equals or exceeds its coupon barrier price, set at 50% of its initial price.
- Potential Non-payment: If the stock falls below this barrier, the coupon payment will not be made for that period. However, it may be paid later if conditions improve.
Payment at Maturity
The total payout at maturity will depend on the final price of the worst-performing stock as follows:
- If the final price is equal to or higher than the principal barrier price, investors receive their principal plus the last contingent coupon payment.
- If the final price is below the principal barrier price, the payout will reflect the principal amount adjusted for the stock’s percentage change, potentially leading to a loss of principal.
Key Financial Data
| Detail | Value |
|---|---|
| Investment Amount | $530,000 |
| Monthly Coupon Payment | $11.642 per $1,000 |
| Annual Yield | ~13.97% |
| Maturity Date | February 26, 2029 |
Investment Considerations
These barrier notes are unsecured obligations of CIBC, making them subject to the bank’s credit risk. They are not insured by any government agency. Potential investors should consider the associated risks, notably the volatility of the underlying stocks. CIBC World Markets Corp. is acting as the placement agent for these notes without receiving underwriting discounts.
