S&P Global Ratings - Unchanged
The following is a press release from S&P Global Ratings: TORONTO (S&P Global Ratings) July 26, 2018--S&P Global Ratings said today that its ratings and outlook on Aimia Inc. (BB-/Negative/--) are unaffected by Air Canada, Toronto-Dominion Bank, Canadian Imperial Bank of Commerce, and Visa Canada Corp.'s proposed announcement on July 25, to acquire Aimia's Aeroplan loyalty program for C$2.25 billion. The proposal includes C$250 million in cash as well as taking over the liability of about C$2 billion in outstanding Aeroplan points. There is some uncertainty regarding the timing and closing of the transaction, as Aimia's special committee is reviewing the merits of the transaction. In addition, on July 26, Mexican aviation company Grupo Aeromexico S.A.B. de C.V. announced a non-binding offer to acquire 48.55% shares held by Aimia in the loyalty program operator PLM Premier S.A. P.I. de C.V. for US$180 million. However, Aimia has rejected the offer because it believes that its stake in PLM is worth significantly more than the proposed offer price. If the Aeroplan asset disposal transaction closes as proposed and Aimia uses the proceeds, along with cash on hand, to pay down the C$250 million senior secured notes and outstanding balance on its credit facility, this would lead to minimal cash flow operating assets and potentially few liabilities for the company. Aimia's special committee is looking at the proposed offer and there is significant uncertainty about the outcome and timing of the decision. However, these corporate developments should not undermine our view of the company's current creditworthiness.