1 Series 39, Series 41, Series 43, Series 45, Series 47, Series 49, and Series 51 shares are subject to an NVCC provision, necessary for the shares to qualify as regulatory capital under Basel III. As such, the shares are automatically converted into common shares upon the occurrence of a “Trigger Event.” As described in the Capital Adequacy Guidelines, a Trigger Event occurs when OSFI determines the bank is or is about to become non-viable and, if after conversion of all contingent instruments and consideration of any other relevant factors or circumstances, it’s reasonably likely that its viability will be restored or maintained; or if the bank has accepted or agreed to accept a capital injection or equivalent support from a federal or provincial government, without which OSFI would have determined the bank to be non-viable. Each such share is convertible into a number of common shares, determined by dividing the par value of $25.00 plus declared and unpaid dividends by the average common share price (as defined in the relevant prospectus supplement) subject to a minimum price of $2.50 per share (subject to adjustment in certain events as defined in the relevant prospectus supplement). The minimum conversion price per common share for CIBC's outstanding NVCC instruments, including NVCC preferred shares, NVCC subordinated debentures and NVCC limited recourse capital notes have been adjusted from $5.00 to $2.50 to account for the Share Split in accordance with the terms and conditions of the NVCC Instruments. We’ve recorded the Series 39, Series 41, Series 43, Series 45, Series 47, Series 49, and Series 51 shares as equity.
2 All preferred shares are listed on the Toronto Stock Exchange.
3 Subject to regulatory approval and certain provisions of the shares, CIBC may redeem all or any part of the then outstanding Non-cumulative Rate Reset Class A preferred shares at par on the earliest redemption date listed above and every five years thereafter.
4 Notice of any redemption will be given by CIBC at least 30 days, and not more than 60 days, prior to the date fixed for redemption. Refer to the relevant prospectus for details.
5 The dividend rate of Series 39 was reset in accordance with the share terms effective July 31, 2019. Prior to this, it was 3.9%.
6 The dividend rate of Series 41 was reset in accordance with the share terms effective January 31, 2020. Prior to this, it was 3.75%.
7 The dividend rate of Series 43 was reset in accordance with the share terms effective July 31, 2020. Prior to this, it was 3.60%.