Groupe Aeroplan amends revolving credit facility to lower pricing

By Sara Rosenberg

New York, May 9 - Groupe Aeroplan Inc. amended its $300 million revolving credit facility, reducing pricing to Libor plus 225 basis points, according to a news release.

Pricing on the revolver can range from Libor plus 175 bps to 300 bps based on credit ratings.

Also, certain restrictive covenants were amended, including covenants relating to distributions and the redemption reserve, which, the company said, will provide it with additional flexibility to execute its strategic plan.

The revolver matures on April 23, 2014.

RBC Capital Markets, TD Securities and Canadian Imperial Bank of Commerce are the lead banks on the deal.

In connection with the amendment, the company repaid and terminated its $100 million term loan with funds for the paydown coming from revolver borrowings.

Groupe Aeroplan is a loyalty management company.

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