CARDS II Trust comments on Aimia press release
27 Jun, 2013, 19:29 ET
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
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