MONTREAL, May 14, 2012 /CNW Telbec/ - Aimia Inc. (TSX: AIM) ("Aimia") announced today that it has agreed to issue to a syndicate of underwriters for distribution to the public $250 million aggregate principal amount of 5.60% Senior Secured Notes Series 4 due May 17, 2019 (the "Notes"). The Notes were priced at $999.26 per $1,000 principal amount, for an effective yield of 5.613% per annum if held to maturity. The offering is expected to close on or about May 17, 2012, subject to customary closing conditions.
The syndicate of underwriters is led by CIBC World Markets Inc., RBC Dominion Securities Inc. and TD Securities Inc.
The Notes will bear interest at the rate of 5.60% per annum and the interest on the Notes will be payable semi-annually in arrears on November 17 and May 17 of each year, commencing on November 17, 2012. The Notes will be secured by certain present and future undertakings, property and assets of Aimia and certain of its subsidiaries, and will be direct secured debt obligations of Aimia ranking equally and pari passu, including with respect to security interests, with all other present and future unsubordinated indebtedness for borrowed money of Aimia or Aimia Canada Inc., as the case may be.
The Notes have been assigned provisional credit ratings of BBB with a stable trend by DBRS Limited and BBB- by Standard & Poors Ratings Services.The net proceeds from the offering will be used by Aimia to repay the amount outstanding under Aimia's $200 million secured revolving credit facility with a term maturing on April 13, 2013, and the remainder for general corporate purposes. The Notes will be offered by way of a prospectus supplement to the amended and restated base shelf prospectus dated April 8, 2011 filed with the securities regulatory authorities in all provinces and territories of Canada. About Aimia Aimia, 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. 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.
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