TORONTO, June 27, 2013 /CNW/ - CARDS II Trust disclosed in its
management's discussion and analysis of financial condition and results
of operations for the three and nine months ended February 28, 2013
filed on April 29, 2013 (the "MD&A") that Canadian Imperial Bank of
Commerce ("CIBC") and Aimia Canada Inc. ("Aimia") are parties to an
agreement (the "Aeroplan Agreement") which governs the Aeroplan
incentive program offered through certain CIBC credit cards. CARDS II
Trust also disclosed in the MD&A that the receivables generated by
these credit cards are a material part of the revolving custodial pool
in the CARDS II Trust securitization program. The Aeroplan Agreement
will expire on December 31, 2013, unless extended by the parties or
replaced in accordance with its terms. CARDS II Trust disclosed in the
MD&A that if the Aeroplan Agreement is not extended or replaced in
accordance with its terms, certain pool performance metrics may be
negatively affected, although this is not expected to result in the
occurrence of an amortization event for any outstanding series of notes
issued by CARDS II Trust.
CIBC today initially provided the following commentary on the press
release issued today by Aimia:
As CIBC has commented previously, CIBC's objective is to have the market
leading travel card in Canada for its clients either through the
revitalization of the Aeroplan partnership or through the launch of
CIBC's own proprietary card offer.
In keeping with CIBC's contractual rights including its right of first
refusal as the incumbent issuer, and notwithstanding that the notice
provided by Aimia has been presented in a way that is inconsistent with
CIBC's understanding of its rights, CIBC is in the process of reviewing
the proposed terms provided by Aimia to see if its objective can be
achieved through a renewal of its agreement.
In the meantime, it is business as usual for CIBC's clients who continue
to earn rewards on their CIBC Aerogold card.
CIBC today then provided the following additional disclosure on the
press release issued today by Aimia:
CIBC has reviewed the proposed terms of the new contract provided by
Aimia late yesterday.
Upon legal review, CIBC has concluded that the notice and document
provided by Aimia to CIBC appears to have been intentionally structured
in a way that attempts to nullify CIBC's right of first refusal and any
ability to match.
Given the structuring of the document and CIBC's contractual rights,
CIBC is exploring its options
Further information regarding the Aeroplan Agreement is contained in the
MD&A under the heading "Recent Developments".
This is not an offer to sell or a solicitation of any offer to buy any
securities. Offers are made only by prospectus or other offering
materials. The securities issued by CARDS II Trust have not been
registered under the U.S. Securities Act of 1933, as amended, or any
applicable state securities laws in the United States.
SOURCE: Cards II Trust
For further information:
Kevin Dove, (416) 980-8835