Aimia (TSX: AIM) has announced it has authorized applicable dividend rates for its Cumulative Rate Reset Preferred Shares, Series 1 and Cumulative Floating Rate Preferred Shares, Series 2, the company said.
The announcement is further to the February 25, 2020 notice and announcement that it will not exercise its right to redeem all or any part of the outstanding Series 1 Preferred Shares or Series 2 Preferred Shares. As a result, the holders of the Series 1 Preferred Shares will have the right to convert all or any number of their Series 1 Preferred Shares into Series 2 Preferred Shares and the holders of the Series 2 Preferred Shares will have the right to convert all or any number of their Series 2 Preferred Shares into Series 1 Preferred Shares, in each case on a one-for-one basis.
On or after March 31, 2020, holders of the Series 1 Preferred Shares will be entitled to receive quarterly fixed, cumulative, preferential cash dividends, as and when declared by the company´s Board of Directors. The dividend rate for the five-year period from and including March 31, 2020 up to but excluding March 31, 2025 will be 4.802%, being 3.75% over the five-year Government of Canada bond yield, as determined in accordance with the rights, privileges, restrictions and conditions attaching to the Series 1 Preferred Shares.
With respect to any Series 2 Preferred Shares that remain outstanding on or after March 31, 2020, holders of the Series 2 Preferred Shares will be entitled to receive quarterly floating rate, cumulative, preferential cash dividends, calculated on the basis of the actual number of days elapsed in such quarterly period divided by 365, as and when declared by the Board of Directors of Aimia. The dividend rate for the floating rate period from and including March 31, 2020 up to but excluding June 30, 2020 will be 5.392%, being 3.75% over the three-month Government of Canada Treasury Bill yield.
Aimia Inc. (TSX: AIM) operates a loyalty solutions business, which is a full-service provider of next generation loyalty solutions for many aviation, travel and hospitality, retail, financial and entertainment verticals.