Primary Offering Prospectus (Form 424B2)
Filed Pursuant to Rule 424(b)(2)
Registration No. 333-272447
| Pricing Supplement dated (To Equity Index Underlying Supplement dated Prospectus Supplement dated |
Senior Global Medium-Term Notes
| · | The Capped Leveraged Buffered Notes (the "notes") provide a 1.5-to-1 upside exposure to any increases in the S&P 500® Index (the "Index"), subject to a Maximum Retuof 11.20%. If the level of the Index decreases, investors will be subject to 1-to-1 downside exposure to any decrease in the level of the Index beyond a 10% decline. Accordingly, you may lose up to 90% of the principal amount. |
| · | For each |
| o | If the Final Level is greater than the Initial Level, the lesser of: |
(1)
(2)
| o | If the Final Level is equal to or less than the Initial Level but greater than or equal to the Buffer Level: |
| o | If the Final Level is less than the Buffer Level: |
| · | The notes do not pay interest. |
| · | The notes will not be listed on any securities exchange. |
| · | The notes will be issued in minimum denomination of |
The notes are unsecured obligations of the Bank and any payment on the notes is subject to the credit risk of the Bank. The notes will not constitute deposits insured by the
Neither the
Investing in the notes involves risks not associated with an investment in ordinary debt securities. See "AdditionalRisk Factors" beginning on page PS-7 of this pricing supplement, and "Risk Factors" beginning on page S-1 of the accompanying underlying supplement, page S-1 of the prospectus supplement and page 1 of the prospectus.
| Price to Public (Initial Issue Price)(1) | Underwriting Discount(1)(2) | Proceeds to Issuer | |
| Per Note | |||
| Total |
| (1) | Because certain dealers who purchase the notes for sale to certain fee-based advisory accounts may forgo some or all of their commissions or selling concessions, the price to public for investors purchasing the notes in these accounts will be |
| (2) |
The initial estimated value of the notes on the Trade Date as determined by the Bank is
We will deliver the notes in book-entry form through the facilities of
ADDITIONAL TERMS OF THE NOTES
You should read this pricing supplement together with the prospectus dated
You should rely only on the information contained in or incorporated by reference in this pricing supplement and the accompanying underlying supplement, the prospectus supplement and the prospectus. This pricing supplement may be used only for the purpose for which it has been prepared. No one is authorized to give information other than that contained in this pricing supplement and the accompanying underlying supplement, the prospectus supplement and the prospectus, and in the documents referred to in those documents and which are made available to the public. We, CIBCWM and our other affiliates have not authorized any other person to provide you with different or additional information. If anyone provides you with different or additional information, you should not rely on it.
We and CIBCWM are not making an offer to sell the notes in any jurisdiction where the offer or sale is not permitted. You should not assume that the information contained in or incorporated by reference in this pricing supplement or the accompanying underlying supplement, the prospectus supplement or the prospectus is accurate as of any date other than the date of the applicable document. Our business, financial condition, results of operations and prospects may have changed since that date. Neither this pricing supplement nor the accompanying underlying supplement, the prospectus supplement or the prospectus constitutes an offer, or an invitation on behalf of us or CIBCWM, to subscribe for and purchase any of the notes and may not be used for or in connection with an offer or solicitation by anyone in any jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation.
References to "CIBC," "the Issuer," "the Bank," "we," "us" and "our" in this pricing supplement are references to
You may access the underlying supplement, the prospectus supplement and the prospectus on the
| · | Underlying supplement dated https://www.sec.gov/Archives/edgar/data/1045520/000110465923098170/tm2322483d89_424b5.htm |
| · | Prospectus supplement dated https://www.sec.gov/Archives/edgar/data/1045520/000110465923098166/tm2322483d94_424b5.htm |
| · | Prospectus dated https://www.sec.gov/Archives/edgar/data/1045520/000110465923098163/tm2325339d10_424b3.htm |
PS-1
SUMMARY
The information in this "Summary" section is qualified by the more detailed information set forth in the underlying supplement, the prospectus supplement and the prospectus. See "Additional Terms of the Notes" in this pricing supplement.
| Issuer: | |
| ReferenceAsset: | The S&P 500® Index (Bloomberg ticker: SPX) |
| Principal Amount: | |
| Aggregate Principal Amount: | |
| Term: | Approximately 13 months |
| Strike Date: | |
| Trade Date: | |
| Original Issue Date: | |
| Valuation Period: | |
| Maturity Date: | |
| Payment at Maturity: |
For each · If the Final Level is greater than the Initial Level, the lesser of: (1) (2) · If the Final Level is equal to or less than the Initial Level but greater than or equal to the Buffer Level: · If the Final Level is less than the Buffer Level: In this case, you will lose 1% of the principal amount for each 1% decrease in the level of the Index by more than 10%. Accordingly, you may lose up to 90% of the principal amount. |
| Upside Participation Rate: | 150% |
| Maximum Return: | 11.20% |
PS-2
| Buffer Amount: | 10% |
| Buffer Level: | 5,444.32, which is 90% of the Initial Level (rounded to two decimal places). |
| Percentage Change: |
Final Level - Initial Level, expressed as a percentage. Initial Level |
| Initial Level: | 6,049.24, which was the Closing Level of the Index on the Strike Date. |
| Final Level: | The arithmetic average of the Closing Levels of the Index on each of the Valuation Dates. |
| Calculation Agent: | |
| CUSIP/ISIN: | 13607XVJ3 / US13607XVJ35 |
| Fees and Expenses: | The price at which you purchase the notes includes costs that the Bank or its affiliates expect to incur and profits that the Bank or its affiliates expect to realize in connection with hedging activities related to the notes. |
PS-3
HYPOTHETICAL PAYMENT AT MATURITY
The following table and examples are provided for illustrative purposes only and are hypothetical. They do not purport to be representative of every possible scenario concerning increases or decreases in the Final Level relative to the Initial Level. We cannot predict the Closing Level of the Index at any time during the term of the notes, including the Valuation Dates. The assumptions we have made in connection with the illustrations set forth below may not reflect actual events. You should not take this illustration or these examples as an indication or assurance of the expected performance of the Index or retuon the notes. The numbers appearing in the table below and following examples have been rounded for ease of analysis.
The table below illustrates the Payment at Maturity on a
| Principal Amount: | |
| Upside Participation Rate: | 150% |
| Maximum Return: | 11.20% |
| Buffer Amount: | 10% |
| Hypothetical Initial Level: | 1,000 |
| Hypothetical Buffer Level: | 900 (90% of the Initial Level) |
| Hypothetical Final Level |
Hypothetical Percentage Change |
Hypothetical Payment at Maturity |
Hypothetical Retuon the Notes |
| 2,000.00 | 100.00% | 11.20% | |
| 1,750.00 | 75.00% | 11.20% | |
| 1,500.00 | 50.00% | 11.20% | |
| 1,250.00 | 25.00% | 11.20% | |
| 1,200.00 | 20.00% | 11.20% | |
| 1,074.70 | 7.47% | 11.20%(1) | |
| 1,050.00 | 5.00% | 7.50% | |
| 1,020.00 | 2.00% | 3.00% | |
| 1,000.00(2) | 0.00% | 0.00% | |
| -5.00% | 0.00% | ||
| 900.00(3) | -10.00% | 0.00% | |
| 850.00 | -15.00% | -5.00% | |
| 800.00 | -20.00% | -10.00% | |
| 700.00 | -30.00% | -20.00% | |
| 500.00 | -50.00% | -40.00% | |
| 250.00 | -75.00% | -65.00% | |
| 0.00 | -100.00% | -90.00% |
| (1) | The retuon the notes cannot exceed the Maximum Return. |
| (2) | The hypothetical Initial Level of 1,000 used in these examples has been chosen for illustrative purposes only. The actual Initial Level is set forth on page PS-3 of this pricing supplement. |
| (3) | This is the hypothetical Buffer Level. |
PS-4
The following examples indicate how the Payment at Maturity would be calculated with respect to a hypothetical
Example 1: The Percentage ChangeIs 50.00%.
The Final Level is 1,500.00, resulting in a Percentage Change of 50.00%. In this example, the Final Level is greater than the Initial Level, and the positive Percentage Change multiplied by the Upside Participation Rate of 150% exceeds the Maximum Retuof 11.20%, the Payment at Maturity would be
=
=
Example 1 shows that the retuon the notes will not exceed the Maximum Return, regardless of the extent to which the level of the Index increases.
Example 2: The Percentage ChangeIs 2.00%.
The Final Level is 1,020.00, resulting in a Percentage Change of 2.00%. In this example, the Final Level is greater than the Initial Level, and the positive Percentage Change multiplied by the Upside Participation Rate of 150% does not exceed the Maximum Retuof 11.20%, the Payment at Maturity would be
=
=
Example 2 shows that the notes provide a leveraged retuif the positive Percentage Change multiplied by the Upside Participation Rate does not exceed the Maximum Return.
Example 3: The Percentage ChangeIs -5.00%.
The Final Level is 950.00, resulting in a Percentage Change of -5.00%. In this example, the Final Level is equal to or less than the Initial Level but greater than or equal to the Buffer Level.
Payment at Maturity =
Example 3 shows that the Payment at Maturity will equal the principal amount if the Final Level is at or below the Initial Level but at or above the Buffer Level, although the level of the Index has decreased moderately.
Example 4: The Percentage Change Is -75.00%.
The Final Level is 250.00, resulting in a Percentage Change of -75.00%. Because the Final Level is less than the Buffer Level, the Payment at Maturity would be
=
=
Example 4 shows that you are exposed on a 1-to-1 basis to any decrease in the level of the Index from the Initial Level by more than the Buffer Amount. You may lose up to 90% of the principal amount.
PS-5
INVESTOR CONSIDERATIONS
The notes are not appropriate for all investors. The notes may be an appropriate investment for you if:
| · | You believe that the level of the Index will increase moderately from the Initial Level to the Final Level. |
| · | You are willing to make an investment that is exposed to the negative performance of the Index on a 1-to-1 basis for each percentage point that the Final Level is less than the Buffer Level. |
| · | You are willing to accept that the retuon the notes will be limited to the Maximum Return. |
| · | You do not seek current income over the term of the notes. |
| · | You are willing to forgo dividends or other distributions paid on the securities included in the Index. |
| · | You are willing to hold the notes to maturity and you do not seek an investment for which there will be an active secondary market. |
| · | You are willing to assume the credit risk of the Bank for any payment under the notes. |
The notes may not be an appropriate investment for you if:
| · | You believe that the level of the Index will decrease from the Initial Level to the Final Level or that it will not increase sufficiently to provide you with your desired return. |
| · | You are unwilling to make an investment that is exposed to the negative performance of the Index on a 1-to-1 basis for each percentage point that the Final Level is less than the Buffer Level. |
| · | You seek full payment of the principal amount of the notes at maturity. |
| · | You seek an uncapped retuon your investment. |
| · | You seek current income over the term of the notes. |
| · | You want to receive dividends or other distributions paid on the securities included in the Index. |
| · | You are unable or unwilling to hold the notes to maturity or you seek an investment for which there will be an active secondary market. |
| · | You are not willing to assume the credit risk of the Bank for any payment under the notes. |
The investor suitability considerations identified above are not exhaustive. Whether or not the notes are a suitable investment for you will depend on your individual circumstances and you should reach an investment decision only after you and your investment, legal, tax, accounting and other advisors have carefully considered the suitability of an investment in the notes in light of your particular circumstances. You should also review ''Additional Risk Factors'' below for risks related to the notes.
PS-6
ADDITIONAL RISK FACTORS
An investment in the notes involves significant risks. In addition to the following risks included in this pricing supplement, we urge you to read "Risk Factors" beginning on page S-1 of the accompanying underlying supplement, page S-1 of the prospectus supplement and page 1 of the prospectus.
You should understand the risks of investing in the notes and should reach an investment decision only after careful consideration, with your advisers, of the suitability of the notes in light of your particular financial circumstances and the information set forth in this pricing supplement and the accompanying underlying supplement, the prospectus supplement and the prospectus.
Structure Risks
You may lose some or a substantial portion of the principal amount of your notes.
The notes do not guarantee full retuof principal. The repayment of any principal on the notes at maturity depends on the Final Level of the Index. The Bank will only repay you the full principal amount of your notes if the Final Level is equal to or greater than the Buffer Level. If the Final Level is less than the Buffer Level, you will be exposed on a 1-to-1 basis to any decrease in the level of the Index by more than 10%. You may lose up to 90% of your principal amount.
The potential retuon your notes will be limited by the Maximum Return.
Your ability to participate in any increase in the level of the Index will be limited because of the Maximum Return. The Maximum Retuwill limit the payment you may receive at maturity, no matter how much the level of the Index may rise by more than approximately 7.47% of the Initial Level over the term of the notes.
The payment on the notes is not linked to the levels of the Index at any time other than the Valuation Dates.
The payment on the notes will be based on the Closing Levels of the Index on the Valuation Dates. Therefore, if the Closing Levels of the Index declined substantially as of the Valuation Dates compared to the Initial Level, the Payment at Maturity may be significantly less than it would otherwise have been had the Payment at Maturity been linked to the Closing Levels of the Index on dates other than the Valuation Dates. Although the actual levels of the Index at other times during the term of the notes may be higher than its Closing Levels on the Valuation Dates, the payment on the notes will not benefit from the Closing Levels of the Index at any time other than the Valuation Dates.
The notes do not bear interest, and the retuon the notes may be less than the retuon a conventional debt security of comparable maturity.
You will not receive any interest payments on the notes. As a result, even if the Payment at Maturity exceeds the principal amount of your notes, the overall retuon your notes may be less than you would have earned by investing in a non-index-linked debt security of comparable maturity that bears interest at a prevailing market rate.
Conflicts of Interest
Certain business, trading and hedging activities ofus, the agent, and our other affiliates may create conflicts with your interests and could potentially adversely affect the value of the notes.
We, the agent, and our other affiliates may engage in trading and other business activities related to the Index or any securities included in the Index that are not for your account or on your behalf. We, the agent, and our other affiliates also may issue or underwrite other financial instruments with returns based upon the Index. These activities may present a conflict of interest between your interest in the notes and the interests that we, the agent, and our other affiliates may have in our or their proprietary accounts, in facilitating transactions, including block trades, for our or their other customers, and in accounts under our or their management. These trading and other business activities, if they adversely affect the level of the Index or secondary trading in your notes, could be adverse to your interests as a beneficial owner of the notes.
Moreover, we, the agent and our other affiliates play a variety of roles in connection with the issuance of the notes, including hedging our obligations under the notes and making the assumptions and inputs used to determine the pricing of the notes and the initial estimated value of the notes when the terms of the notes are set. We expect to hedge our obligations under the notes through the agent, one of our other affiliates, and/or another unaffiliated
PS-7
counterparty, which may include any dealer from which you purchase the notes. Any of these hedging activities may adversely affect the level of the Index and therefore the market value of the notes and the amount you will receive, if any, on the notes. In connection with such activities, the economic interests of us, the agent, and our other affiliates may be adverse to your interests as an investor in the notes. Any of these activities may adversely affect the value of the notes. In addition, because hedging our obligations entails risk and may be influenced by market forces beyond our control, this hedging activity may result in a profit that is more or less than expected, or it may result in a loss. We, the agent, one or more of our other affiliates or any unaffiliated counterparty will retain any profits realized in hedging our obligations under the notes even if investors do not receive a favorable investment retuunder the terms of the notes or in any secondary market transaction. Any profit in connection with such hedging activities will be in addition to any other compensation that we, the agent, our other affiliates or any unaffiliated counterparty receive for the sale of the notes, which creates an additional incentive to sell the notes to you. We, the agent, our other affiliates or any unaffiliated counterparty will have no obligation to take, refrain from taking or cease taking any action with respect to these transactions based on the potential effect on an investor in the notes.
There are potential conflicts of interest between you and the calculation agent.
The calculation agent will determine, among other things, the amount of payment on the notes. The calculation agent will exercise its judgment when performing its functions. For example, the calculation agent will determine whether a Market Disruption Event affecting the Index has occurred on a scheduled Valuation Date and determine the Closing Level for a scheduled Valuation Date if such scheduled Valuation Date is postponed to the last possible day. See "Certain Terms of the Notes- Valuation Dates-For Notes Where the Reference Asset Is a Single Index" in the underlying supplement. This determination may, in turn, depend on the calculation agent's judgment as to whether the event has materially interfered with our ability or the ability of one of our affiliates to unwind our hedge positions. The calculation agent will be required to carry out its duties in good faith and use its reasonable judgment. However, because we will be the calculation agent, potential conflicts of interest could arise. None of us, CIBCWM or any of our other affiliates will have any obligation to consider your interests as a holder of the notes in taking any action that might affect the value of your notes.
Tax Risks
The tax treatment of the notes is uncertain.
Significant aspects of the tax treatment of the notes are uncertain. You should consult your tax advisor about your own tax situation. See "United States Federal Income Tax Considerations" and "Certain Canadian Federal Income Tax Considerations" in this pricing supplement, "Material
General Risks
Payment on the notes is subject to our credit risk, and actual or perceived changes in our creditworthiness are expected to affect the value of the notes.
The notes are our senior unsecured debt obligations and are not, either directly or indirectly, an obligation of any third party. As further described in the accompanying prospectus and prospectus supplement, the notes will rank on par with all of our other unsecured and unsubordinated debt obligations, except such obligations as may be preferred by operation of law. Any payment to be made on the notes depends on our ability to satisfy our obligations as they come due. As a result, the actual and perceived creditworthiness of us may affect the market value of the notes and, in the event we were to default on our obligations, you may not receive the amounts owed to you under the terms of the notes. If we default on our obligations under the notes, your investment would be at risk and you could lose some or all of your investment. See "Description of Senior Debt Securities-Events of Default" in the accompanying prospectus.
The Bank's initial estimated value of the notes is lower than the initial issue price (price to public) of the notes.
The initial issue price of the notes exceeds the Bank's initial estimated value because costs associated with selling and structuring the notes, as well as hedging the notes, are included in the initial issue price of the notes. See "The Bank's Estimated Value of the Notes" in this pricing supplement.
PS-8
The Bank's initial estimated value does not represent future values of the notes and may differ from others' estimates.
The Bank's initial estimated value of the notes is only an estimate, which was determined by reference to the Bank's internal pricing models when the terms of the notes were set. This estimated value was based on market conditions and other relevant factors existing at that time, the Bank's internal funding rate on the Trade Date and the Bank's assumptions about market parameters, which can include volatility, dividend rates, interest rates and other factors. Different pricing models and assumptions could provide valuations for the notes that are greater or less than the Bank's initial estimated value. In addition, market conditions and other relevant factors in the future may change, and any assumptions may prove to be incorrect. On future dates, the market value of the notes could change significantly based on, among other things, changes in market conditions, including the level of the Index, the Bank's creditworthiness, interest rate movements and other relevant factors, which may impact the price at which the agent or any other party would be willing to buy the notes from you in any secondary market transactions. The Bank's initial estimated value does not represent a minimum price at which the agent or any other party would be willing to buy the notes in any secondary market (if any exists) at any time. See "The Bank's Estimated Value of the Notes" in this pricing supplement.
The Bank's initial estimated value of the notes was not determined by reference to credit spreads for our conventional fixed-rate debt.
The internal funding rate used in the determination of the Bank's initial estimated value of the notes generally represents a discount from the credit spreads for our conventional fixed-rate debt. The discount is based on, among other things, our view of the funding value of the notes as well as the higher issuance, operational and ongoing liability management costs of the notes in comparison to those costs for our conventional fixed-rate debt. If the Bank were to have used the interest rate implied by our conventional fixed-rate debt, we would expect the economic terms of the notes to be more favorable to you. Consequently, our use of an internal funding rate for market-linked notes had an adverse effect on the economic terms of the notes and the initial estimated value of the notes on the Trade Date, and could have an adverse effect on any secondary market prices of the notes. See "The Bank's Estimated Value of the Notes" in this pricing supplement.
Thenotes will not be listed on any securities exchange and we do not expect a trading market for the notes to develop.
The notes will not be listed on any securities exchange. Although CIBCWM and/or its affiliates may purchase the notes from holders, they are not obligated to do so and are not required to make a market for the notes. There can be no assurance that a secondary market will develop for the notes. Because we do not expect that any market makers will participate in a secondary market for the notes, the price at which you may be able to sell your notes is likely to depend on the price, if any, at which CIBCWM and/or its affiliates are willing to buy your notes.
If a secondary market does exist, it may be limited. Accordingly, there may be a limited number of buyers if you decide to sell your notes prior to maturity. This may affect the price you receive upon such sale. Consequently, you should be willing to hold the notes to maturity.
PS-9
INFORMATION REGARDING THE INDEX
The information below is a brief description of the Index. We have derived the following information from publicly available documents. We have not independently verified the accuracy or completeness of the following information.
The Index is calculated, maintained and published by
In addition, information about the Index may be obtained from other sources, including, but not limited to, the Index sponsor's website (including information regarding the Index's sector weightings). We are not incorporating by reference into this pricing supplement the website or any material it includes. None of us, CIBCWM or any of our other affiliates makes any representation that this publicly available information regarding the Index is accurate or complete.
Historical Performance of the Index
The following graph sets forth daily Closing Levels of the Index for the period from
Historical Performance of the Index
PS-10
The following discussion is a brief summary of the material
The
The expected characterization of the notes is not binding on the
You should consult your tax advisor as to the tax consequences of such characterization and any possible alternative characterizations of the notes for
PS-11
CERTAIN CANADIAN FEDERAL INCOME TAX CONSIDERATIONS
In the opinion of
This summary assumes that no amount paid or payable to a holder described herein will be the deduction component of a "hybrid mismatch arrangement" under which the payment arises within the meaning of the rules in the Canadian Tax Act with respect to "hybrid mismatch arrangements" (the "Hybrid Mismatch Rules"). Investors should note that the Hybrid Mismatch Rules are highly complex and there remains significant uncertainty as to their interpretation and application.
This summary is supplemental to and should be read together with the description of material Canadian federal income tax considerations relevant to a Non-Resident Holder owning notes under "Material Income Tax Consequences-Canadian Taxation" in the accompanying prospectus and a Non-Resident Holder should carefully read that description as well.
This summary is of a general nature only and is not intended to be, nor should it be construed to be, legal or tax advice to any particular Non-Resident Holder. Non-Resident Holders are advised to consult with their own tax advisors with respect to their particular circumstances.
Based on Canadian tax counsel's understanding of the
Non-Resident Holders should consult their own advisors regarding the consequences to them of a disposition of the notes to a person with whom they are not dealing at arm's length for purposes of the Canadian Tax Act.
PS-12
SUPPLEMENTAL PLAN OF DISTRIBUTION (CONFLICTS OF INTEREST)
CIBCWM will purchase the notes from CIBC at the price to public less the underwriting discount set forth on the cover page of this pricing supplement for distribution to other registered broker-dealers, or will offer the notes directly to investors. CIBCWM or other registered broker-dealers will offer the notes at the price to public set forth on the cover page of this pricing supplement. CIBCWM may receive a commission of up to
CIBCWM is our affiliate, and is deemed to have a conflict of interest under FINRA Rule 5121. In accordance with FINRA Rule 5121, CIBCWM may not make sales in this offering to any of its discretionary accounts without the prior written approval of the customer.
We will deliver the notes against payment therefor in
The Bank may use this pricing supplement in the initial sale of the notes. In addition, CIBCWM or another of the Bank's affiliates may use this pricing supplement in market-making transactions in any notes after their initial sale. Unless CIBCWM or we inform you otherwise in the confirmation of sale, this pricing supplement is being used by CIBCWM in a market-making transaction.
While CIBCWM may make markets in the notes, it is under no obligation to do so and may discontinue any market-making activities at any time without notice. The price that it makes available from time to time after the Original Issue Date at which it would be willing to repurchase the notes will generally reflect its estimate of their value. That estimated value will be based upon a variety of factors, including then prevailing market conditions, our creditworthiness and transaction costs. However, for a period of approximately three months after the Trade Date, the price at which CIBCWM may repurchase the notes is expected to be higher than their estimated value at that time. This is because, at the beginning of this period, that price will not include certain costs that were included in the initial issue price, particularly our hedging costs and profits. As the period continues, these costs are expected to be gradually included in the price that CIBCWM would be willing to pay, and the difference between that price and CIBCWM's estimate of the value of the notes will decrease over time until the end of this period. After this period, if CIBCWM continues to make a market in the notes, the prices that it would pay for them are expected to reflect its estimated value, as well as customary bid-ask spreads for similar trades. In addition, the value of the notes shown on your account statement may not be identical to the price at which CIBCWM would be willing to purchase the notes at that time, and could be lower than CIBCWM's price. See the section titled "Supplemental Plan of Distribution (Conflicts of Interest)" in the accompanying prospectus supplement.
The price at which you purchase the notes includes costs that the Bank or its affiliates expect to incur and profits that the Bank or its affiliates expect to realize in connection with hedging activities related to the notes. These costs and profits will likely reduce the secondary market price, if any secondary market develops, for the notes. As a result, you may experience an immediate and substantial decline in the market value of your notes on the Original Issue Date.
PS-13
THE BANK'S ESTIMATED VALUE OF THE NOTES
The Bank's initial estimated value of the notes set forth on the cover of this pricing supplement is equal to the sum of the values of the following hypothetical components: (1) a fixed-income debt component with the same maturity as the notes, valued using our internal funding rate for structured debt described below, and (2) the derivative or derivatives underlying the economic terms of the notes. The Bank's initial estimated value does not represent a minimum price at which CIBCWM or any other person would be willing to buy your notes in any secondary market (if any exists) at any time. The internal funding rate used in the determination of the Bank's initial estimated value generally represents a discount from the credit spreads for our conventional fixed-rate debt. The discount is based on, among other things, our view of the funding value of the notes as well as the higher issuance, operational and ongoing liability management costs of the notes in comparison to those costs for our conventional fixed-rate debt. For additional information, see "
The Bank's initial estimated value of the notes is lower than the initial issue price of the notes because costs associated with selling, structuring and hedging the notes are included in the initial issue price of the notes. These costs include the selling commissions paid to CIBCWM and other affiliated or unaffiliated dealers, the projected profits that our hedge counterparties, which may include our affiliates, expect to realize for assuming risks inherent in hedging our obligations under the notes and the estimated cost of hedging our obligations under the notes. Because hedging our obligations entails risk and may be influenced by market forces beyond our control, this hedging may result in a profit that is more or less than expected, or it may result in a loss. We or one or more of our affiliates will retain any profits realized in hedging our obligations under the notes. See "
PS-14
VALIDITY OF THE NOTES
In the opinion of
In the opinion of
PS-15
Attachments
Disclaimer
CIBC -
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