MONTREAL, May 9 /CNW Telbec/ - Groupe Aeroplan Inc. (TSX: AER) ("Groupe
Aeroplan" or the "Corporation") announced today that it concluded an
amendment to its existing credit facilities with its lending syndicate.
The Corporation repaid $100 million outstanding under its term facility
with funds drawn from its revolving facility, and the term facility was
The new secured credit facility, which now only consists of a revolving
facility of $300 million, matures April 23, 2014. It ranks pari passu with Groupe Aeroplan's Senior Secured Notes Series 1 due April 23,
2012, Series 2 due September 2, 2014 and Series 3 due January 26, 2017.
Reflecting current market conditions and the Corporation's current
credit ratings, interest rates have been reduced to Canadian prime rate
plus 1.25% and Bankers' Acceptance and LIBOR rates plus 2.25%.
Depending on the Corporations' credit ratings, interest rates under the
facility may vary within a range of Canadian prime rate plus 0.75% to
2.00%; and Bankers' Acceptance and LIBOR rates plus 1.75% to 3.00%. The
Corporation may also borrow in £ sterling, Euros and US dollars. The
new facility includes amendments to certain restrictive covenants,
including covenants relating to distributions and the redemption
reserve, which will provide the Corporation with additional flexibility
to execute its strategic plan.
The lending syndicate, which is co-led by RBC Capital Markets, TD
Securities and Canadian Imperial Bank of Commerce, also includes Bank
of Montreal, The Bank of Nova Scotia, Bank of America N.A., JP Morgan
Chase Bank, N.A., National Bank of Canada and HSBC Bank Canada.
About Groupe Aeroplan Inc.
Groupe Aeroplan Inc., a global leader in loyalty management, owns
Aeroplan, Canada's premier coalition loyalty program, Carlson
Marketing, an international loyalty marketing services, engagement and
events provider headquartered in the U.S., as well as Nectar, the
United Kingdom's largest coalition loyalty program. Groupe Aeroplan
also operates LMG Insight & Communication, an international
customer-driven insight and data analytics business. In addition,
Groupe Aeroplan has majority equity positions in Air Miles Middle East
and Nectar Italia as well as a minority position in Club Premier,
Mexico's leading coalition loyalty program. For more information about
Groupe Aeroplan, please visit www.groupeaeroplan.com.
Caution Concerning Forward-Looking Statements
Certain statements in this news release may contain forward-looking
statements. Forward-looking statements are included in this news
release. These forward-looking statements are identified by the use of
terms and phrases such as "anticipate", "believe", "could", "estimate",
"expect", "intend", "may", "plan", "predict", "project", "will",
"would", and similar terms and phrases, including references to
assumptions. Such statements, by their nature, are based on assumptions
and are subject to important risks and uncertainties. Any forecasts or
forward-looking predictions or statements cannot be relied upon due to,
amongst other things, changing external events and general
uncertainties of the economy and the business of Groupe Aeroplan and
its partners. Results indicated in forward-looking statements may
differ materially from actual results for a number of reasons,
including the factors identified throughout Groupe Aeroplan's public
disclosure record on file with the Canadian securities regulatory
authorities. The forward-looking statements contained in this
discussion represent Groupe Aeroplan's expectations as of May 9, 2011
and are subject to change after such date. However, Groupe Aeroplan
disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
future events or otherwise, except as required under applicable
SOURCE GROUPE AEROPLAN INC.
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