30 December 2013
Aimia said it has closed the purchase transaction between TD, CIBC and Aimia for the purchase by TD of approximately half of the Aeroplan credit card portfolio from CIBC.
This marks the final requirement for the Aeroplan transformation, which will take off with the launch of Aeroplan program enhancements including the launch of Distinction, as well as new credit card products from TD and CIBC from January 1, 2014.
The amount of USD312.5m will be paid to CIBC, of which a payment of USD150m has now been funded by Aimia.
The closing of the transaction does not trigger any immediate changes for existing cardholders. Current CIBC Aerogold Visa cardholders will receive a letter from CIBC in January informing them whether their credit card account will remain with CIBC or will be transitioning to TD in mid-2014. Cardholders with accounts moving to TD will also receive a letter from TD in January providing them with more information about the transition. Under the interim servicing agreement between TD and CIBC, cardholders transitioning to TD will continue to earn Aeroplan Miles on purchases and will continue to be serviced by CIBC until new TD cards are issued.
Both TD and CIBC will offer a new suite of Aeroplan co-branded credit cards, providing members with great earning opportunities through the Aeroplan program, plus the same Air Canada benefits on select card products. These are in addition to the benefits that will be available under Aeroplan´s Distinction member recognition program that offers exclusive flight rewards, bonus mile offers, preferential treatment and privileges.
Depending on the net migration of Aeroplan-branded credit card accounts between CIBC and TD over the next five years, TD, Aimia, and CIBC have agreed to make additional payments of up to USD400m. Aimia will be responsible for – or entitled to receive – up to USD100m of these payments. For more information visit www.aeroplan.com/.