Income Securities & Trusts

CIBC is the leading underwriter of Income Funds in Canada (including Income Deposit Securities [IDS]), having led and structured more Income Fund offerings than any other dealer each year since 2001. Our proven expertise in this marketplace is illustrated through our leading market share in block trading, the most comprehensive research coverage and position as the #1 seller of financings through the largest retail broker network.

What is an Income Fund?

An Income Fund is a public company structure for distributing cash earned from an operating business to investors seeking stable and predictable cash flows. While legal structures vary, Income Funds are designed such that the underlying business flows its free cash flow through to the investors in the form of monthly distributions. Distributions may be characterized as income, dividends or return of capital for tax purposes.

The Income Fund Market

Income Funds are a well-established asset class in the Canadian capital markets. The market has an aggregate market capitalization of more than CAD$200 billion, which is comprised of over 250 issuers. Having grown significantly in recent years, Income Funds represent greater than 10% of the total Canadian stock market. The market encompasses the well-known REIT and oil and gas royalty trust sectors, as well as many other types of businesses.

Expertise

We have a dedicated team of professionals with extensive experience structuring and executing income fund transactions. We act as a full service provider to such issuers through:

• Underwriting Initial Public Offerings and Follow-On Offerings
• Advising on mergers, acquisitions and other strategic alternatives
• Ongoing after-market support through our Sales and Trading team
• Hosting several specialized conferences throughout the year

The IDS (also known as IPS or EIS) is a relatively recent addition to the income securities market in Canada. CIBC pioneered the development of this innovative security, leading the first such offering for U.S. based concessions provider Centerplate, Inc. (formerly Volume Services America). Centerplate, Inc. completed a USD$277 million Initial Public Offering in December 2003, with its IDSs listed on both the American Stock Exchange and Toronto Stock Exchange. The IDS has since evolved to a northbound structure with several U.S.-based companies issuing securities in the Canadian marketplace.