Aimia amends its credit facilities
MONTREAL, April 13, 2012 /CNW Telbec/ – Aimia (TSX: AIM) announced today
that it concluded an amendment to its existing credit facilities with
its lending syndicate. The Corporation extended the term of its
existing $300 million revolving facility by two years to April 23,
2016. In addition, the Corporation obtained a further revolving
facility which can be drawn from time to time, in an aggregate amount
not to exceed $200 million, for any term it may request not extending
beyond the new maturity date.
The aggregate $500 million secured revolving credit facility ranks pari passu with Aimia’s Senior Secured Notes Series 1 due April 23, 2012, Series 2
due September 2, 2014 and Series 3 due January 26, 2017. The
Corporation expects to draw $200 million on the additional revolving
facility with a term maturing on April 13, 2013, to repay the $200
million Senior Secured Notes Series 1 that mature on April 23, 2012.
Reflecting current market conditions and the Corporation’s current
credit ratings, interest rates have been reduced to Canadian prime rate
plus 0.75% and Bankers’ Acceptance and LIBOR rates plus 1.75%.
Depending on the Corporation’s credit ratings, interest rates under the
facility may vary within a range of Canadian prime rate plus 0.20% to
1.50%; and Bankers’ Acceptance and LIBOR rates plus 1.20% to 2.50%. The
Corporation may also borrow in £ sterling, Euros and US dollars.
“The new facilities will provide Aimia with additional flexibility which
will enable us to execute our strategic business plan to further our
position as the recognized global leader in loyalty management,” said
David Adams, Executive Vice President and Chief Financial Officer,
The lending syndicate, which is co-led by RBC Capital Markets, TD
Securities and Canadian Imperial Bank of Commerce, also includes Bank
of Montreal, The Bank of Nova Scotia, Bank of America N.A., JP Morgan
Chase Bank, N.A., National Bank of Canada and HSBC Bank Canada.
Groupe Aeroplan Inc., doing business as Aimia (“Aimia” or the
“Corporation”), is a global leader in loyalty management. Aimia’s
unique capabilities include proven expertise in delivering proprietary
loyalty services, launching and managing coalition loyalty programs,
creating value through loyalty analytics and driving innovation in the
emerging digital and mobile spaces. Aimia owns and operates Aeroplan,
Canada’s premier coalition loyalty program and Nectar, the United
Kingdom’s largest coalition loyalty program. In addition, Aimia has
majority equity positions in Air Miles Middle East and Nectar Italia as
well as a minority position in Club Premier, Mexico’s leading coalition
loyalty program and Cardlytics, a US-based private company operating in
merchant-funded transaction-driven marketing for electronic banking.
Aimia is a Canadian public company listed on the Toronto Stock Exchange
(TSX: AIM) and has over 3,400 employees in more than 20 countries
around the world. For more information about Aimia, please visit www.aimia.com.
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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
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, 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 April 13, 2012, 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.