PrefBlog

Aimia has announced:

that it does not intend to exercise its right to redeem all or any part of the currently outstanding 6,900,000 Cumulative Rate Reset Preferred Shares, Series 1 (the “Series 1 Shares”) on March 31, 2015. As a result and subject to certain conditions set out in the prospectus supplement dated January 13, 2010 relating to the issuance of the Series 1 Shares, the holders of the Series 1 Shares have the right to convert all or part of their Series 1 Shares, on a one-for-one basis, into Cumulative Floating Rate Preferred Shares, Series 2 (the “Series 2 Shares”) of Aimia on March 31, 2015. Holders who do not exercise their right to convert their Series 1 Shares into Series 2 Shares on such date will continue to hold their Series 1 Shares.

The foregoing conversion right is subject to the conditions that: (i) if Aimia determines that there would be less than 1,000,000 Series 2 Shares outstanding after March 31, 2015, then holders of Series 1 Shares will not be entitled to convert their shares into Series 2 Shares, and (ii) alternatively, if Aimia determines that there would remain outstanding less than 1,000,000 Series 1 Shares after March 31, 2015, then all remaining Series 1 Shares will automatically be converted into Series 2 Shares on a one-for-one basis on March 31, 2015. In either case, Aimia will give written notice to that effect to registered holders of Series 1 Shares no later than March 24, 2015.

The dividend rate applicable to the Series 1 Shares for the 5-year period from and including March 31, 2015 to but excluding March 31, 2020, and the dividend rate applicable to the Series 2 Shares for the 3-month period from and including March 31, 2015 to but excluding June 30, 2015, will be announced by way of a press release on March 2, 2015.

Beneficial owners of Series 1 Shares who wish to exercise their conversion right should communicate as soon as possible with their broker or other nominee to obtain instructions for exercising such right on or prior to the deadline for exercise, which is 5:00 p.m. (Montreal time) on March 17, 2015.

Inquiries should be directed to Aimia’s Registrar and Transfer Agent, CST Trust Company, at 1-800-387-0825 (toll free in Canada and the United States).

No surprises here, since the issue resets at GOC5 + 375bp and was quoted at 22.38-50 on February 27 to yield 4.97%-93 to perpetuity.

AIM.PR.A changed its ticker from AER.PR.A in October, 2011. AER.PR.A commenced trading 2010-1-20 after being announced 2010-1-12.

This entry was posted on Friday, February 27th, 2015 at 11:48 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.