By Cristal Cody
Prospect News, Jan. 6 - Aimia Inc. said on Monday that it sold C$125 million of cumulative rate-reset preferred shares to yield a 6.25% dividend for the initial five-year period.
The company sold 5 million shares of the series 3 preferred stock at C$25 per share.
The dividend rate will reset on March 31, 2019 and every five years thereafter at a rate equal to the five-year Government of Canada bond yield plus 420 basis points.
CIBC World Markets Inc., TD Securities Inc., RBC Dominion Securities Inc. and BMO Capital Markets Corp. were the lead managers.
The deal includes an over-allotment option of 1 million shares for additional proceeds of C$25 million.
The series 3 preferred shares are redeemable by Aimia on March 31, 2019 and every five years thereafter.
Series 3 shareholders will have the right, at their option, to convert their stock into series 4 cumulative floating-rate preferred shares on March 31, 2019 and on March 31 every five years thereafter. Series 4 shareholders will be entitled to receive cumulative quarterly floating dividends at a rate equal to the three-month Government of Canada Treasury bill yield plus 420 bps.
Aimia plans to use the proceeds from the deal to supplement its financial resources and for general corporate purposes.
Montreal-based Aimia operates loyalty service management programs, including Aeroplan Canada.
| Issuer: | Aimia Inc.
|
| Amount: | C$125 million, or 5 million shares
|
| Greenshoe: | C$25 million, or 1 million shares
|
| Securities: | Cumulative rate-reset series 3 preferred shares
|
| Bookrunners: | CIBC World Markets Inc., TD Securities Inc., RBC Dominion Securities Inc. and BMO Capital Markets Corp.
|
| Dividend: | 6.25%; resets March 31, 2019 and every five years thereafter at five-year Government of Canada bond yield plus 420 bps
|
| Price: | C$25 per share
|
| Call feature: | March 31, 2019 and every five years thereafter
|
| Pricing date: | Jan. 6
|
| Settlement date: | Jan. 15
|
| Distribution: | Canada
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