Aimia won’t redeem series 1, 2 preferred shares; holders may convert

By Sarah Lizee

Olympia, Wash., Feb. 25 – Aimia Inc. does not intend to exercise its right to redeem any of its 2,921,275 of outstanding cumulative-rate reset preferred shares, series 1, or any of its 2,161,865 of outstanding cumulative floating-rate preferred shares, series 2, on March 31, according to a press release.

As a result, holders of the series 1 preferred shares have the right to convert their series 1 preferred shares on a one-for-one basis into series 2 preferred shares, and holders of the series 2 preferred shares have the right to convert their series 2 preferred shares on a one-for-one basis into series 1 preferred shares, in each case on March 31.

Holders who do not exercise their right to convert on that date will continue to hold their series 1 preferred shares or series 2 preferred shares.

The series 1 preferred shares conversion right is subject to the conditions that, if there are less than 1 million series 2 preferred shares outstanding on March 31, holders of series 1 preferred shares will not be entitled to convert their shares into series 2 preferred shares, and, if there are fewer than 1 million series 1 preferred shares outstanding after March 31, all remaining series 1 preferred shares will automatically be converted into series 2 preferred shares on a one-for-one basis on March 31.

The series 2 preferred shares conversion right is subject to the conditions that, if there are less than 1 million of series 1 preferred shares outstanding after March 31, holders of series 2 preferred shares will not be entitled to convert their shares into series 1 preferred shares, and if there are fewer than 1 million series 2 preferred shares outstanding on March 31, all remaining series 2 preferred shares will automatically be converted into series 1 preferred shares on a one-for-one basis on March 31.

The dividend rate applicable to the series 1 preferred shares for the five-year period from and including March 31 to but excluding March 31, 2025, and the dividend rate applicable to the series 2 preferred shares for the three-month period from and including March 31 to but excluding June 30 will be announced on Feb. 28.

To the extent any preferred shares are converted on March 31, holders as of the close of business on March 20 will be able to receive all dividends payable on the preferred shares on March 31.

Aimia is a Montreal-based marketing and loyalty analytics company.

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