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, Aimia.
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.