Aimia Inc. has recently announced that it has completed the sale of its Aeroplan loyalty program to Air Canada and used the majority of the proceeds to repay debt.
The company said in his statement that gross proceeds from the sale has been roughly totalled as $497 million after adjustments related to working capital. At closing, about $308 million was used to repay and terminate Aimia’s credit facility and redeem all of its outstanding senior secured notes.
A further $100 million has deposited into a restricted, interest-bearing account jointly controlled by Aimia and Air Canada under the terms of the deal.
Now, approximately half of Aimia’s 1,500 employees will move to Air Canada as a result of the transaction.