AER.PR.A Settles at Slight Premium on Good Volume

Groupe Aeroplan has announced:

that it has closed its previously announced bought deal public offering of 6,000,000 cumulative rate reset preferred shares, Series 1 (the “Series 1 Preferred Shares”) for gross proceeds of C$150 million, purchased by a syndicate of underwriters led by CIBC, RBC Dominion Securities Inc. and TD Securities Inc., acting as co-Bookrunners.

Groupe Aeroplan Inc. has also granted the underwriters an option to purchase up to an additional 900,000 Series 1 Preferred Shares to cover over-allotments, exercisable in whole or in part at any time up to 30 days following closing of the offering. If the over-allotment option is exercised in full, the aggregate gross proceeds to Groupe Aeroplan Inc. will be C$172.5 million.

The net proceeds of the issue will be used by Groupe Aeroplan Inc. to repay indebtedness, and for general corporate purposes.

This is the FixedReset 6.50%+375 issue announced January 12.

The issue traded 279,498 shares on the TMX in a range of 24.86-22 before closing at 25.09-10, 4×9.

Vital statistics are:

Maturity Type : Limit Maturity
Maturity Date : 2040-01-20
Maturity Price : 25.04
Evaluated at bid price : 25.09
Bid-YTW : 6.33 %

AER.PR.A is tracked by HIMIPref™ but is relegated to the Scraps subindex on credit concerns.

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