AIM.PR.A To Reset at 4.50%

Aimia has announced:

the applicable dividend rates for its Cumulative Rate Reset Preferred Shares, Series 1 (the “Series 1 Shares”) and its Cumulative Floating Rate Preferred Shares, Series 2 (the “Series 2 Shares”), further to the February 27, 2015 notice that it will not exercise its right to redeem all or any part of the outstanding Series 1 Shares and, as a result of which, subject to certain conditions, the holders of the Series 1 Shares will have the right to convert all or part of their Series 1 Shares into Series 2 Shares on a one-for-one basis.

With respect to any Series 1 Shares that remain outstanding after March 31, 2015, holders of the Series 1 Shares will be entitled to receive quarterly fixed, cumulative, preferential cash dividends, as and when declared by the Board of Directors of Aimia, subject to the provisions of the Canada Business Corporations Act. The dividend rate for the five-year period from and including March 31, 2015 to but excluding March 31, 2020 will be 4.5%, being 3.75% over the five-Year Government of Canada bond yield, as determined in accordance with the terms of the Series 1 Shares.

With respect to any Series 2 Shares that may be issued on March 31, 2015, holders of the Series 2 Shares will be entitled to receive quarterly floating rate, cumulative, preferential cash dividends, calculated on the basis of the actual number of days elapsed in such quarterly period divided by 365, as and when declared by the Board of Directors of Aimia, subject to the provisions of the Canada Business Corporations Act. The dividend rate for the floating rate period from and including March 31, 2015 to but excluding June 30, 2015 will be 4.217%, being 3.75% over the 90-day Government of Canada Treasury Bill yield, as determined in accordance with the terms of the Series 2 Shares.

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).

The extension has been previously reported on PrefBlog. 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.

The initial dividend rate was 6.50%, so the new rate of 4.50% represents a decline of about 31%.

As noted in the release, the deadline for conversion instructions to reach the company is March 17 at 5pm Montreal Time; I will post a note a few days in advance of the deadline with a recommendation regarding whether holders should or should not exchange their shares.

Leave a Reply

You must be logged in to post a comment.