Well, yet another bank leaps into action with a new 4.5% perpetual!
This is actually rather nice, having so many issues that are so similar (SunLife, Scotia, Royal and BMO) … I forsee many happy hours in the years ahead, swapping between them in a low-risk dividend-capture strategy.
Anyway … CIBC is issuing 10-million of these shares (up to another 2-million may be issued) for an issue size of $250-million (up to $300-million). The provisional rating from DBRS is Pfd-1(low); the S&P provisional is P-1(Low).
| CIBC 4.5% Perp Ser 32 Redemption Schedule | ||
| From | To | Strike |
| 2012-04-30 | 2013-04-29 | $26.00 |
| 2013-04-30 | 2014-04-29 | $25.75 |
| 2014-04-30 | 2015-04-29 | $25.50 |
| 2015-04-30 | 2016-04-29 | $25.25 |
| 2016-04-30 | INFINITE DATE | $25.00 |
The anticipated closing date is February 14, 2007
Update & Bump : Let’s look at a few comparables …
| Curve Prices (and other info) on CM.PR.? and comparables | ||||
| Data | CM.PR.? | CM.PR.I | CM.PR.H | RY.PR.D |
| Price due to base-rate | 23.83 | 24.54 | 24.79 | 23.96 |
| Price due to short-term | 0.11 | 0.11 | 0.11 | 0.11 |
| Price due to long-term | 0.33 | 0.34 | 0.34 | 0.34 |
| Price due to Liquidity | 1.00 | 1.03 | 0.23 | 1.04 |
| Price due to error | 0.03 | 0.03 | 0.02 | -0.02 |
| Price due to Credit Spread (Low) | -0.71 | -0.73 | -0.71 | NA |
| Curve Price | $24.60 | $24.77 | $25.44 | $25.43 |
| Quote 2/1 | Issue $25.00 |
25.39-44 | 25.76-99 | 25.00-09 |
| Annual Dividend | $1.125 | $1.175 | $1.20 | $1.125 |
| After-Tax YTW | 3.58% | 3.59% | 3.45% | 3.61% |
| Pre-Tax YTW | 4.50% | 4.52% | 4.34% | 4.55% |
[…] Now with a pre-tax bid-YTW of 3.48% based on a bid of $26.21 and a call 2008-5-30 at $25.75. There wasn’t much volume for this move – only 2,300 shares – but perhaps somebody wanted to switch into the new issue. […]
[…] Nesbitt crossed 10,000 at 25.38. Now with a pre-tax bid-YTW of 4.52% based on a bid of $25.40 and a call 2016-3-1 at $25.00. Both better yield and better interest rate protection than the new issue. Just like yesterday! […]
[…] The new issue from CIBC commenced trading today and on heavy volume of 807,580 shares closed at $24.87-88, 30×100. […]