TD Bank Group and Aimia announce conditional agreement


    --  Would enhance TD's position as a leading North American credit
        card provider
    --  Would add significant growth to attractive premium travel
        segment of TD's card portfolio
    --  Financially attractive opportunity that would fit within TD's
        risk appetite
    --  Conditional agreement - contractual right to match, to expire
        on August 9, 2013

TORONTO, June 27, 2013 /CNW/ - TD Bank Group (TD) (TSX and NYSE: TD) and Aimia 
(TSX: AIM) today announced that they have entered into a conditional program 
agreement under which TD would become the primary credit card issuer for 
Aeroplan, a loyalty program owned by Aimia, starting on January 1, 2014, 
subject to a contractual right to match the same terms by Aeroplan's current 
primary credit card issuer. The right to match period expires on August 9, 
2013.

Provided the 10-year agreement becomes effective, it would enhance TD's 
position as a leading North American credit card provider and expand the 
attractive premium travel segment of TD's card portfolio through a suite of 
co-branded Aeroplan credit cards. The new cards would combine Aeroplan's 
leading loyalty platform with TD Canada Trust's distribution network, while 
adding to TD's strong line-up of existing credit cards, including travel 
cards, which meet a variety of customer needs and preferences.

TD expects that, as structured, the agreement would not have a material impact 
on 2014 earnings and would make a solid contribution to 2015 earnings. As part 
of the agreement, TD would make a $100 million upfront payment and commit to 
minimum annual miles purchases for the first three years. While TD currently 
expects to exceed its annual miles purchases commitment, in case of any 
shortfall below its commitment levels, TD would make a payment to compensate 
Aimia for the gross margin on the shortfall. The agreement contemplates a 
joint marketing spend by TD and Aimia of around $140 million in the first four 
years to support the new cards and program features.

If Aeroplan's incumbent credit card issuer exercises its contractual right to 
match the same terms on or before August 9, 2013, TD is entitled to receive a 
break fee of $80 million to cover transaction expenses.

Under the agreement, TD would offer a new suite of cards beginning in 2014, as 
announced by Aimia in a news release today. The suite will include enhanced 
premium, premium and mid-market cards, along with a card for Canadian small 
business owners and a card for customers travelling frequently between Canada 
and the U.S.

About TD Bank Group
The Toronto-Dominion Bank and its subsidiaries are collectively known as TD 
Bank Group (TD). TD is the sixth largest bank in North America by branches and 
serves approximately 22 million customers in four key businesses operating in 
a number of locations in key financial centres around the globe: Canadian 
Personal and Commercial Banking, including TD Canada Trust and TD Auto Finance 
Canada; Wealth and Insurance, including TD Wealth, TD Direct Investing, an 
investment in TD Ameritrade, and TD Insurance; U.S. Personal and Commercial 
Banking, including TD Bank, America's Most Convenient Bank, and TD Auto 
Finance U.S.; and Wholesale Banking, including TD Securities. TD also ranks 
among the world's leading online financial services firms, with approximately 
8 million active online and mobile customers. TD had CDN$826 billion in assets 
on April 30, 2013.The Toronto-Dominion Bank trades under the symbol "TD" on 
the Toronto and New York Stock Exchanges.

Caution Regarding Forward-Looking Statements

From time to time, TD makes written and/or oral forward-looking statements, 
including in this press release, in other filings with Canadian regulators or 
the U.S. Securities and Exchange Commission, and in other communications. In 
addition, representatives of TD may make forward-looking statements orally to 
analysts, investors, the media and others. All such statements are made 
pursuant to the "safe harbour" provisions of, and are intended to be 
forward-looking statements under, applicable Canadian and U.S. securities 
legislation, including the U.S. Private Securities Litigation Reform Act of 
1995. Forward-looking statements include, but are not limited to, statements 
regarding TD's objectives and priorities for 2013 and beyond and strategies to 
achieve them, and TD's anticipated financial performance. Forward-looking 
statements are typically identified by words such as "will", "should", 
"believe", "expect", "anticipate", "intend", "estimate", "plan", "may", and 
"could".

By their very nature, these statements require TD to make assumptions and are 
subject to inherent risks and uncertainties, general and specific. Especially 
in light of the uncertainty related to the financial, economic, political and 
regulatory environments, such risks and uncertainties - many of which are 
beyond TD's control and the effects of which can be difficult to predict - may 
cause actual results to differ materially from the expectations expressed in 
the forward-looking statements. Risk factors that could cause such differences 
include: credit, market (including equity, commodity, foreign exchange, and 
interest rate), liquidity, operational (including technology), reputational, 
insurance, strategic, regulatory, legal, environmental, and other risks, all 
of which are discussed in the Management's Discussion and Analysis ("MD&A") in 
TD's 2012 Annual Report and in the Second Quarter 2013 Report to Shareholders.

With regard to TD's conditional agreement with Aimia pursuant to which TD 
would become Aeroplan's primary credit card issuer, there can be no assurance 
that the conditional agreement will become effective, or if the conditional 
agreement becomes effective, there can be no assurance that TD will realize 
the anticipated benefits or results due to a variety of factors, including: a 
delay in the agreement becoming effective or in the launch of the cards; 
higher than anticipated costs to launch the cards; higher than expected 
payment under mile purchase commitment; lower than anticipated (i) interchange 
rates, account origination, card usage or card spend, (ii) appeal or market 
acceptance of Aeroplan's program, and/or (iii) yields (finance charges/fees); 
industry competition; differences in the credit performance and risk 
characteristics of the Aeroplan program relative to TD's expectations; and 
changes in network rules, regulatory or legal environment (including any 
litigation).

We caution that the preceding list is not exhaustive of all possible risk 
factors and other factors could also adversely affect TD's results. For 
additional information, please see the "Risk Factors and Management" section 
of the 2012 MD&A. TD's material general economic assumptions are set out in 
TD's 2012 Annual Report under the heading "Economic Summary and Outlook" and 
for each of the business segments under the heading "Business Outlook and 
Focus for 2013" and in TD's Second Quarter 2013 Report to Shareholders under 
the headings "Business Outlook."

All such factors should be considered carefully, as well as other 
uncertainties and potential events, and the inherent uncertainty of 
forward-looking statements, when making decisions with respect to TD and we 
caution readers not to place undue reliance on TD's forward-looking statements.

Any forward-looking statements contained in this press release represent the 
views of management only as of the date hereof and are presented for the 
purpose of assisting TD's shareholders and analysts in understanding TD's 
objectives and priorities and anticipated financial performance as at and for 
the periods ended on the dates presented, and may not be appropriate for other 
purposes. TD does not undertake to update any forward-looking statements, 
whether written or oral, that may be made from time to time by or on its 
behalf, except as required under applicable securities legislation.

Investors:

Rudy Sankovic Senior Vice President, Investor Relations 416-308-9030

Media:

Ali Duncan Martin Manager, Media Relations 416-983-4412

SOURCE: TD Bank Group

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CO: TD Investor Relations
ST: Ontario
NI: FIN ORDER 

-0- Jun/27/2013 11:18 GMT


 
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