AIMIA ANNOUNCES NEW DIVIDEND RATE FOR SERIES 1 PREFERRED SHARES

CNW Group

Mon, Mar 3, 2025, 3:30 PM 4 min read

TORONTO, March 3, 2025 /CNW/ - Aimia Inc. (TSX: AIM) ("Aimia" or the "Company") announced today the applicable dividend rates for its Cumulative Rate Reset Preferred Shares, Series 1 (the "Series 1 Shares") further to its February 26, 2025 notice and announcement that it will not exercise its right to redeem all or any part of the outstanding Series 1 Shares.

As announced in the Company's press release dated February 26, 2025, none of the Series 1 Shares will be eligible for conversion into Cumulative Floating Rate Preferred Shares, Series 2 ("Series 2 Shares") on March 31, 2025, as there are less than 1,000,000 Series 1 Shares outstanding (since any such conversion would result in less than 1,000,000 Series 2 Shares being outstanding).

Holders of the Series 1 Shares will be entitled to receive fixed, cumulative, preferential cash dividends, payable quarterly, as and when declared by the Company's Board of Directors. The annual dividend rate for the five-year period from and including March 31, 2025 to, but excluding, March 31, 2030 will be 6.281% being equal to the five-year Government of Canada bond yield of 2.531% plus 3.75%, as determined in accordance with the rights, privileges, restrictions and conditions attaching to the Series 1 Shares.

Holders of Series 1 Shares as of the applicable record date remain eligible to receive dividends on their Series 1 Shares, as and when declared by the Board of Directors of Aimia, for the period from and including December 31, 2024 to, but excluding, March 31, 2025 at the current annual dividend rate of 4.802%.

Aimia recently completed a substantial issuer bid to purchase for cancellation 7,889,931 preferred shares, of which 4,528,157 were Series 1 preferred shares, in consideration for 9.75% senior unsecured notes ("2030 Notes"). Based on the number of Preferred Shares validly tendered and 2030 Notes issued in consideration, Aimia will generate approximately $6.4 million in annual cash savings when comparing the annual preferred dividends and Part VI.1 tax to the annual cash coupon interest payments. Under IFRS, Aimia expects to record a $53.7 million gain on the transaction, based on the exchange value of the 2030 Notes and the carrying value of the Preferred Shares exchanged.

About Aimia

Aimia Inc. (TSX: AIM) is a holding company that makes long-term investments in private and public businesses through controlling or minority stakes. Aimia targets companies with durable economic advantages evidenced by a track record of substantial free cash flow generation over complete business cycles, strong growth prospects, and guided by strong, experienced management teams. Headquartered in Toronto, Canada, Aimia is positioned to invest in any sector, wherever a suitable opportunity can be identified worldwide. In addition, we seek investments that may efficiently utilize the Company's operating and capital loss carry-forwards to further enhance shareholder value.

For more information about Aimia, visit www.aimia.com.

Forward-Looking Statements

This press release contains statements that constitute "forward-looking information" within the meaning of Canadian securities laws ("forward-looking statements"), which are based upon Aimia's current expectations, estimates, projections, assumptions and beliefs. All information that is not clearly historical in nature may constitute forward-looking statements. Forward-looking statements are typically identified by the use of terms such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will", "would" and "should", and similar terms and phrases, including references to assumptions.

Forward-looking statements in this press release include, but are not limited to, statements relating to payment of dividends with respect to the Series 1 Shares and the annual cash savings and gain on the transaction. Forward-looking statements, by their nature, are based on assumptions and are subject to known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the forward-looking statement will not occur. The forward-looking statements in this press release speak only as of the date hereof and reflect several material factors, expectations and assumptions. Undue reliance should not be placed on any predictions or forward-looking statements as these may be affected by, among other things, changing external events and general uncertainties of the business. A discussion of the material risks applicable to the Company can be found in Aimia's current Management's Discussion and Analysis and Annual Information Form, each of which have been or will be filed on SEDAR+ and can be accessed at www.sedarplus.ca. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Aimia disclaims any intention and assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

SOURCE Aimia Inc.