Aeroplan Transformation Takes Off With Purchase Transaction Now Closed
MONTREAL, Dec. 27, 2013 /CNW Telbec/ – Aimia is pleased to confirm today
the closing of the purchase transaction between TD, CIBC and Aimia for
the purchase by TD of approximately half of the Aeroplan credit card
portfolio from CIBC.
This marks the final requirement for the Aeroplan transformation, which
will take off with the launch of Aeroplan program enhancements
including the launch of Distinction, as well as new credit card
products from TD and CIBC from January 1, 2014.
In line with the previously announced terms of the agreement, an
aggregate amount of $312.5 million (plus the par value of the related
credit card receivables outstanding) will be paid to CIBC, of which a
payment of $150 million has now been funded by Aimia.
“The successful completion of this transaction puts Aimia in a unique
place, working alongside strong financial services partners and Air
Canada to shape what the future can look like for coalition loyalty,”
said Rupert Duchesne, Group Chief Executive, Aimia. “The increased
engagement of our members and our partners as we introduce a market
leading program will be at the heart of what will drive our growth.”
The closing of the transaction does not trigger any immediate changes
for existing cardholders. Current CIBC Aerogold Visa cardholders will
receive a letter from CIBC in January informing them whether their
credit card account will remain with CIBC or will be transitioning to
TD in mid-2014. Cardholders with accounts moving to TD will also
receive a letter from TD in January providing them with more
information about the transition. Under the interim servicing agreement
between TD and CIBC, cardholders transitioning to TD will continue to
earn Aeroplan Miles on purchases and will continue to be serviced by
CIBC until new TD cards are issued.
Both TD and CIBC will offer a new suite of Aeroplan co-branded credit
cards, providing members with great earning opportunities through the
Aeroplan program, plus the same Air Canada benefits on select card
products. These are in addition to the benefits that will be available
under Aeroplan’s Distinction member recognition program that offers
exclusive flight rewards, bonus mile offers, preferential treatment and
privileges.
At December 27, 2013, the portfolio acquired by TD represented
approximately: $19 billion of annual retail spend, 550,000 accounts and
$3.3 billion of credit card receivables outstanding.
Depending on the net migration of Aeroplan-branded credit card accounts
between CIBC and TD over the next five years, TD, Aimia, and CIBC have
agreed to make additional payments of up to $400 million. Aimia will be
responsible for – or entitled to receive – up to $100 million of these
payments.
Member Information about Aeroplan Program Enhancements and Credit Card
Agreement
For more information visit www.aeroplan.com/new. Consumer questions can
also be addressed on Twitter (@Aeroplan) or Facebook (www.facebook.com/Aeroplan) or by contacting the Aeroplan Contact Centre at: 1-800-361-5373.
Caution Concerning Forward-Looking Statements
Forward-looking statements are included in this news release. These
forward-looking statements are identified by the use of terms and
phrases such as “anticipate”, “believe”, “could”, “estimate”, “expect”,
“intend”, “may”, “plan”, “predict”, “project”, “will”, “would”, and
“should” and similar terms and phrases, including references to
assumptions. Such statements may involve but are not limited to
comments with respect to strategies, expectations, planned operations
or future actions.
Forward-looking statements, by their nature, are based on assumptions
and are subject to important risks and uncertainties. Any forecasts,
predictions or forward-looking statements cannot be relied upon due to,
among other things, changing external events and general uncertainties
of the business and its corporate structure. Results indicated in
forward-looking statements may differ materially from actual results
for a number of reasons, including without limitation, dependency on
top accumulation partners and clients, the effective implementation of
Aeroplan Program enhancements and a new financial card partnership,
conflicts of interest, greater than expected redemptions for rewards,
regulatory matters, retail market/economic conditions, industry
competition, Air Canada liquidity issues, Air Canada or travel industry
disruptions, airline industry changes and increased airline costs,
supply and capacity costs, unfunded future redemption costs, failure to
safeguard databases and consumer privacy, changes to coalition loyalty
programs, seasonal nature of the business, other factors and prior
performance, foreign operations, legal proceedings, reliance on key
personnel, labour relations, pension liability, technological
disruptions and inability to use third party software, failure to
protect intellectual property rights, interest rate and currency
fluctuations, leverage and restrictive covenants in current and future
indebtedness, uncertainty of dividend payments, managing growth, credit
ratings, as well as the other factors identified in this news release
and throughout Aimia’s public disclosure record on file with the
Canadian securities regulatory authorities.
The forward-looking statements contained herein represent Aimia’s
expectations as of December 27, 2013, and are subject to change after
such date. However, Aimia disclaims any intention or obligation to
update or revise any forward-looking statements whether as a result of
new information, future events or otherwise, except as required under
applicable securities regulations.
About Aeroplan
Aeroplan, Canada’s premier coalition loyalty program, is owned by Aimia
Inc., a global leader in loyalty management. Aeroplan’s millions of
members earn Aeroplan Miles with its growing network of over 75
world-class partners, representing more than 150 brands in the
financial, retail, and travel sectors. In 2012, approximately 2.3
million rewards were issued to members including more than 1.6 million
flights on Air Canada and Star Alliance carriers which offer travel to
more than 1,000 destinations worldwide. In addition to flights, members
also have access to over 1,000 exciting specialty, merchandise, hotel,
car rental and experiential rewards.
About Aimia
Aimia Inc. (“Aimia” or the “Corporation”) is a global leader in loyalty
management. Employing more than 4,000 people in over 20 countries
worldwide, Aimia offers clients, partners and members proven expertise
in launching and managing coalition loyalty programs, delivering
proprietary loyalty services, creating value through loyalty analytics
and driving innovation in the emerging digital, mobile and social
communications spaces.
Aimia owns and operates Aeroplan, Canada’s premier coalition loyalty
program, Nectar, the United Kingdom’s largest coalition loyalty
program, Nectar Italia and Smart Button a leading provider of SaaS
loyalty solutions. In addition, Aimia owns stakes in Air Miles Middle
East, Mexico’s leading coalition loyalty program Club Premier, Brazil’s
Prismah Fidelidade, China Rewards – the first coalition loyalty program
in China that enables members to earn and redeem a common currency, and
i2c, a joint venture with Sainsbury’s offering insight and data
analytics services in the UK to retailers and suppliers. Aimia also
holds a minority position in Cardlytics, a US-based private company
operating in card-linked marketing for electronic banking. Aimia is
listed on the Toronto Stock Exchange (TSX: AIM). For more information,
visit us at www.aimia.com.
SOURCE AIMIA
Contact:
Media
JoAnne Hayes
416-352-3706
joanne.hayes@aimia.com
Analysts & Investors
Karen Keyes
416-352-3728
karen.keyes@aimia.com