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Bonds News

BRIEF-Aimia Sells Nectar Business To Sainsbury's

Feb 1 (Reuters) - Aimia Inc:

* PRESS RELEASE - AIMIA SELLS NECTAR BUSINESS TO SAINSBURY’S

* DEAL FOR A GROSS CONSIDERATION OF APPROXIMATELY $105 MILLION (OR £60 MILLION)

* AGREEMENT ALSO PROVIDES FOR TRANSFER TO SAINSBURY’S OF APPROXIMATELY $183 MILLION (£105 MILLION) OF CASH

* CO WILL CONTINUE TO DELIVER CUSTOMER INSIGHTS AND DATA ANALYTICS PLATFORMS TO CUSTOMERS OUTSIDE U.K.

* AGREEMENT ALSO PROVIDES FOR TRANSFER TO SAINSBURY’S OF ABT $183 MILLION (£105 MILLION) OF CASH PROVIDING COVERAGE AGAINST NECTAR REDEMPTION LIABILITY

* AFTER CONSENT OF LENDERS, CO REDUCED OVERALL DEBT LEVEL WITH A $100 MILLION REPAYMENT MADE AT CLOSING

* AIMIA - IMPACT OF DEAL TO HAVE POSITIVE IMPACT ON CO’S NET CASH POSITION PRIOR TO REPAYMENT OF $100 MILLION UNDER CREDIT FACILITY

* DEAL IS ALSO SUBJECT TO CUSTOMARY WORKING CAPITAL ADJUSTMENTS, WITH NET WORKING CAPITAL PAID TO SAINSBURY’S AT CLOSING OF ABOUT $96 MILLION

* IN ADDITION, AIMIA HAS AGREED TO CERTAIN AMENDMENTS TO CREDIT AGREEMENT

* ALSO OBTAINED CONSENT OF ITS LENDERS, AS REQUIRED FOR RELEASE OF ONE OF CO’S UNIT GUARANTORS UNDER ITS SENIOR CREDIT AGREEMENT Source text for Eikon: Further company coverage:

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