Groupe Aeroplan Inc. Renews and Extends Term of $650 Million Credit Facilities

///Groupe Aeroplan Inc. Renews and Extends Term of $650 Million Credit Facilities
Groupe Aeroplan Inc. Renews and Extends Term of $650 Million Credit Facilities 2017-11-15T20:59:41+00:00


MONTREAL, June 12 /CNW Telbec/ – Groupe Aeroplan Inc. (TSX: AER)
announced today that it has concluded a renewal of its $650 million credit
facilities, $500 million of which is drawn and $150 million is committed and
available, with its lending syndicate.
The new secured credit facilities, which consist of a bridge loan of $100
million, maturing June 19, 2010, as well as a term facility of $300 million
and a revolving facility of $250 million, both maturing on April 23, 2012,
rank pari passu with the Senior Secured Notes Series 1 due in 2012, issued by
the Corporation in April 2009. Reflecting current market conditions and the
Corporation’s current credit ratings, interest rates have been amended to
Canadian prime rate plus 2.5% and Bankers’ Acceptance and LIBOR rates plus
3.75%. Depending on the Corporation’s credit ratings, interest rates under the
facilities may vary within a range of Canadian prime rate plus 1.75% to 4.25%;
and Bankers’ Acceptance and LIBOR rates plus 2.75% to 5.25%. The applicable
debt service ratio covenant has also been amended to a maximum of 2.0 to 1.0.
In addition, the Corporation may also borrow in (pnds stlg) sterling,
Euros and US dollars under its revolving credit facility.
“The new facilities provide Groupe Aeroplan with additional flexibility
and access to liquidity, which will enable it to execute its strategic
business plan,” said David Adams, Executive Vice President and Chief Financial
The lending syndicate, which was co-lead and arranged by RBC Capital
Markets and TD Securities, also includes Canadian Imperial Bank of Commerce,
Bank of Montreal, The Bank of Nova Scotia, Bank of America, N.A., JP Morgan
Chase Bank, N.A., National Bank of Canada, HSBC Bank Canada, Sumitomo Mitsui
Banking Corporation of Canada and ATB Corporate Financial Services.

Caution Concerning Forward-Looking Statements

Certain statements in this news release may contain forward-looking
statements, including the access to liquidity. Forward-looking 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. The
forward-looking statements contained in this discussion represent the
corporation’s expectations as of June 12, 2009, and are subject to change
after such date. However, the corporation 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 securities regulations.

About Groupe Aeroplan Inc.

Groupe Aeroplan Inc. is a leading international loyalty management
corporation. Groupe Aeroplan owns Aeroplan, Canada’s premier loyalty program
and Nectar, the United Kingdom’s leading coalition loyalty program. In the
Gulf Region, Groupe Aeroplan owns 60 per cent of Rewards Management Middle
East, the operator of Air Miles programs in the United Arab Emirates, Qatar
and Bahrain. Groupe Aeroplan also operates LMG Insight & Communication, a
customer-driven insight and data analytics business offering international
services to retailers and their suppliers.
For more information about Groupe Aeroplan, please visit
%SEDAR: 00027127EF

For further information: Media: Michèle Meier, (514) 205-7028,
michele.meier@aeroplan.com; JoAnne Hayes, (416) 352-3706,
joanne.hayes@aeroplan.com; Analysts: Trish Moran, (416) 352-3728,