CIBC announces completion of offering of Global Payments stock

CIBC has completed the sale of a total of 2,327,755 shares of Global Payments common stock through an underwritten offering at a price of US$44.25 per share, before underwriters commissions and expenses.On May 5, 2004, CIBC announced that Global Payments Inc. was undertaking a registered public offering with respect to the 8.3 million shares of Global Payments Inc. common stock owned by CIBC. Citigroup Global Markets and CIBC World Markets were the joint book-running managers for the offering. Credit Suisse First Boston, Morgan Stanley, UBS Investment Bank, SunTrust Robinson Humphrey and Thomas Weisel Partners were the co-managers. The transaction consisted of an underwritten offering of 1,327,755 shares sold directly by an affiliate of CIBC to the underwriters, along with an option to purchase up to an additional 1,000,000 shares from such affiliate to cover overallotments. In addition, CIBC announced that it has entered into a derivative transaction with an affiliate of Citigroup Global Markets involving 6,000,000 shares of Global Payments Inc. common stock. The derivative transaction, involving a series of 5 equal sized collars of 1.2 million shares each, maturing between March 2006 and April 2007, will provide CIBC with the opportunity to participate in a portion of any price increase in the Global Payments Inc. common stock over that period while simultaneously protecting CIBC against any significant price decrease. The gains on the derivative transaction will be based on the market price of the Global Payments Inc. shares at those maturity dates and will be subject to the upper and lower limits of the collars. To hedge its exposure under the derivative transaction, the Citigroup Global Markets affiliate borrowed and sold 5,600,000 shares of Global Payments Inc. common stock in the underwritten public offering completed today. CIBC acquired its stake in Global Payments Inc. in 2001 as consideration for the sale of CIBCs merchant acquiring business.