This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

CIBC Announces Closing Of Agreements With Aimia And TD Bank Group

Stocks in this article: CM

TORONTO, Dec. 27, 2013 /CNW/ - CIBC (TSX: CM) (NYSE: CM) announced today it has completed the transactions with Aimia and TD Bank Group that were announced on September 16, 2013.

CIBC has sold approximately 50 per cent of its existing Aerogold VISA portfolio, consisting primarily of credit card-only customers, to TD Bank Group. Consistent with CIBC's strategy to invest in and deepen client relationships, CIBC has retained the Aerogold VISA credit card accounts held by clients with broader banking relationships at CIBC. In connection with today's sale, CIBC and Aimia have entered into a 10-year agreement under which CIBC will continue to be an issuer of Aeroplan related travel credit cards and CIBC Aerogold clients will benefit from Aeroplan's enhanced rewards program.

As consideration for the sale, CIBC has received approximately $3.5 billion, representing the amount of the credit card receivables from the sold portfolio (being approximately $3.3 billion) plus $200 million, of which $50 million was paid by TD Bank Group and the balance was paid by Aimia.  In addition, CIBC will receive payments from TD Bank Group of approximately $37.5 million per year in each of the next three years.

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 informing them whether their credit card account will remain with CIBC or will be transitioning to TD.  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. All Aeroplan Miles reside in a member's Aeroplan account and are not impacted by any change to their credit card.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,805.41 +127.51 0.76%
S&P 500 1,964.58 +13.76 0.71%
NASDAQ 4,483.7150 +30.9230 0.69%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs