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Groupe Aeroplan closes US$167.1 million offering of cumulative rate reset preferred shares

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Groupe Aeroplan

On January 20, 2010, Groupe Aeroplan Inc. (AER: TSX) announced that it had closed its previously announced bought deal public offering of 6,000,000 cumulative rate reset preferred shares, Series 1 (the "Series 1 Preferred Shares") for gross proceeds of $150 million, purchased by a syndicate of underwriters led by CIBC, RBC Dominion Securities Inc. and TD Securities Inc., acting as co-Bookrunners. On January 26, 2010, Groupe Aeroplan announced the successful closing of the previously announced exercise of the over-allotment option to purchase an additional 900,000 Series 1 Preferred Shares at a purchase price of $25.00 per share. The net proceeds of the exercise of the over-allotment option represent $21.8 million and will bring the aggregate net proceeds of the offering of Series 1 Preferred Shares to approximately $167.1 million. $140 million of such proceeds were used to repay indebtedness under the Corporation's revolving credit facility and the balance of $27.1 million will be used for general corporate purposes. The underwriters were advised in this transaction by Fasken Martineau with a team that included Peter Villani, Gilles Leclerc, Catherine Isabelle, Jean François-Séguin and Gilles Carli (tax).



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