TORONTO, March 3,
2025 /CNW/ - Aimia Inc. (TSX: AIM)
("Aimia" or the "Company") announced today the
applicable dividend rates for its Cumulative Rate Reset Preferred
Shares, Series 1 (the "Series 1 Shares")
further to its February 26,
2025 notice and announcement that it will not exercise its
right to redeem all or any part of the outstanding Series 1
Shares.
As announced in the Company's press release dated February 26, 2025, none of the Series 1 Shares
will be eligible for conversion into Cumulative Floating Rate
Preferred Shares, Series 2 ("Series 2 Shares") on
March 31, 2025, as there are less
than 1,000,000 Series 1 Shares outstanding (since any such
conversion would result in less than 1,000,000 Series 2 Shares
being outstanding).
Holders of the Series 1 Shares will be entitled to receive
fixed, cumulative, preferential cash dividends, payable quarterly,
as and when declared by the Company's Board of Directors. The
annual dividend rate for the five-year period from and including
March 31, 2025 to, but excluding, March 31, 2030 will be
6.281% being equal to the five-year Government of Canada bond yield of 2.531% plus 3.75%, as
determined in accordance with the rights, privileges, restrictions
and conditions attaching to the Series 1 Shares.
Holders of Series 1 Shares as of the applicable record date
remain eligible to receive dividends on their Series 1 Shares,
as and when declared by the Board of Directors of Aimia, for the
period from and including December 31, 2024 to, but excluding,
March 31, 2025 at the current annual dividend rate of
4.802%.
Aimia recently completed a substantial
issuer bid to purchase for cancellation 7,889,931 preferred shares,
of which 4,528,157 were Series 1 preferred shares, in consideration
for 9.75% senior unsecured notes ("2030 Notes"). Based on
the number of Preferred Shares validly tendered and 2030 Notes
issued in consideration, Aimia will generate
approximately $6.4 million in annual
cash savings when comparing the annual preferred dividends and
Part VI.1 tax to the annual cash coupon interest payments.
Under IFRS, Aimia expects to record a $53.7
million gain on the transaction, based on the exchange value
of the 2030 Notes and the carrying value of the Preferred Shares
exchanged.
About Aimia
Aimia Inc. (TSX: AIM) is a holding company that makes long-term
investments in private and public businesses through controlling or
minority stakes. Aimia targets companies with durable economic
advantages evidenced by a track record of substantial free cash
flow generation over complete business cycles, strong growth
prospects, and guided by strong, experienced management teams.
Headquartered in Toronto, Canada,
Aimia is positioned to invest in any sector, wherever a suitable
opportunity can be identified worldwide. In addition, we seek
investments that may efficiently utilize the Company's operating
and capital loss carry-forwards to further enhance shareholder
value.
For more information about Aimia, visit www.aimia.com.
Forward-Looking Statements
This press release contains statements that constitute
"forward-looking information" within the meaning of Canadian
securities laws ("forward-looking statements"), which are
based upon Aimia's current expectations, estimates, projections,
assumptions and beliefs. All information that is not clearly
historical in nature may constitute forward-looking statements.
Forward-looking statements are typically identified by the use of
terms such as "anticipate", "believe", "could", "estimate",
"expect", "intend", "may", "plan", "predict", "project", "will",
"would" and "should", and similar terms and phrases, including
references to assumptions.
Forward-looking statements in this press
release include, but are not limited to, statements relating to
payment of dividends with respect to the Series 1 Shares and the
annual cash savings and gain on the transaction. Forward-looking
statements, by their nature, are based on assumptions and are
subject to known and unknown risks and uncertainties, both general
and specific, that contribute to the possibility that the
forward-looking statement will not occur. The forward-looking
statements in this press release speak only as of the date hereof
and reflect several material factors, expectations and assumptions.
Undue reliance should not be placed on any predictions or
forward-looking statements as these may be affected by, among other
things, changing external events and general uncertainties of the
business. A discussion of the material risks applicable to the
Company can be found in Aimia's current Management's
Discussion and Analysis and Annual Information Form, each of which
have been or will be filed on SEDAR+ and can be accessed at
www.sedarplus.ca. Except as required by
applicable securities laws, forward-looking statements speak only
as of the date on which they are made and Aimia disclaims any
intention and assumes no obligation to publicly update or revise
any forward-looking statement, whether as a result of new
information, future events or otherwise.
SOURCE Aimia Inc.
