Aimia Announces Dividend Rates on Series 1 Cumulative Rate Reset Preferred Shares and Series 2 Cumulative Floating Rate Preferred Shares
TORONTO, Feb. 28, 2020 /CNW Telbec/ – Aimia (TSX: AIM) today announced the applicable dividend rates for its Cumulative Rate Reset Preferred Shares, Series 1 (the "Series 1 Preferred Shares") and its Cumulative Floating Rate Preferred Shares, Series 2 (the "Series 2 Preferred Shares"), further to the February 25, 2020 notice and announcement that it will not exercise its right to redeem all or any part of the outstanding Series 1 Preferred Shares or Series 2 Preferred Shares and, as a result of which, subject to certain conditions, the holders of the Series 1 Preferred Shares will have the right to convert all or any number of their Series 1 Preferred Shares into Series 2 Preferred Shares and the holders of the Series 2 Preferred Shares will have the right to convert all or any number of their Series 2 Preferred Shares into Series 1 Preferred Shares, in each case on a one-for-one basis.
With respect to any Series 1 Preferred Shares that remain outstanding on or after March 31, 2020, holders of the Series 1 Preferred Shares will be entitled to receive quarterly fixed, cumulative, preferential cash dividends, as and when declared by the company’s Board of Directors, subject to compliance with the provisions of the Canada Business Corporations Act. The dividend rate for the five-year period from and including March 31, 2020 up to but excluding March 31, 2025 will be 4.802%, being 3.75% over the five-year Government of Canada bond yield, as determined in accordance with the rights, privileges, restrictions and conditions attaching to the Series 1 Preferred Shares.
With respect to any Series 2 Preferred Shares that remain outstanding on or after March 31, 2020, holders of the Series 2 Preferred Shares will be entitled to receive quarterly floating rate, cumulative, preferential cash dividends, calculated on the basis of the actual number of days elapsed in such quarterly period divided by 365, as and when declared by the Board of Directors of Aimia, subject to the provisions of the Canada Business Corporations Act. The dividend rate for the floating rate period from and including March 31, 2020 up to but excluding June 30, 2020 will be 5.392%, being 3.75% over the three-month Government of Canada Treasury Bill yield, as determined in accordance with the rights, privileges, restrictions and conditions attaching to the Series 2 Preferred Shares.
The Series 1 Preferred Shares and the Series 2 Preferred Shares are issued in "book entry only" form and must be purchased or transferred through a participant (a "CDS Participant") in the depository service of CDS Clearing and Depository Services Inc. ("CDS"). All rights of holders of Series 1 Preferred Shares and Series 2 Preferred Shares must be exercised through CDS or the CDS Participant through which the Series 1 Preferred Shares or Series 2 Preferred Shares are held, as the case may be. As such, beneficial owners of Series 1 Preferred Shares or of Series 2 Preferred Shares who wish to exercise their conversion right should communicate as soon as possible with their broker or other nominee to obtain instructions for exercising such right through CDS on or prior to the deadline for exercise, which is 5:00 p.m. (Montreal time) on March 16, 2020 for CDS as sole registered holder of the Series 1 Preferred Shares and the Series 2 Preferred Shares but 1:00 p.m. (Montreal time) on March 16, 2020 for beneficial holders wishing to exercise their conversion right through CDS Participants.
Inquiries should be directed to Aimia’s Registrar and Transfer Agent, AST Trust Company (Canada), at 1-800-387-0825 (toll free in Canada and the United States).
About Aimia
Aimia Inc. (TSX: AIM) operates a loyalty solutions business, which is a well-recognized, global full-service provider of next generation loyalty solutions for many of the world’s leading brands in the retail, CPG, travel & hospitality, financial services and entertainment verticals.
Aimia is focused on growing earnings through its existing business and investments, including the Club Premier program in Mexico, which it jointly controls with Aeromexico through its investment in PLM, and an investment alongside Air Asia in travel technology company BIGLIFE, the operator of BIG Loyalty.
For more information about Aimia, visit corp.aimia.com.
SOURCE Aimia Inc.
Contact: Analysts, Investors, and Media: Tom Tran, (647) 329-5128, tom.tran@aimia.com