DBRS Rates Groupe Aeroplan’s New Debt Issuance at BBB
DBRS has today assigned a rating of BBB with a Stable trend to Groupe Aeroplan Inc.’s (Aeroplan or the Company) issuance of $200 million, 6.95% Senior Secured Notes, Series 3 (Notes) due January 26, 2017. The Notes will be direct secured obligations of the Company and will rank pari passu with all other secured and unsubordinated indebtedness of Aeroplan. In the event that the pari passu ranking secured and unsubordinated indebtedness becomes unsecured, the Notes will become direct unsecured obligations and will rank pari passu with all other unsecured and unsubordinated indebtedness of Aeroplan.
Proceeds will be used mainly for bank debt repayment, with no material impact on the Company’s financial profile. The Notes will be issued under Aeroplan’s shelf prospectus dated March 26, 2009.
Notes:
All figures are in Canadian dollars unless otherwise noted.
The applicable methodologies are Consumer Products and DBRS Preferred Share and Hybrid Criteria for Corporate Issuers, which can be found on our website under Methodologies.
This is a Corporate rating.
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