TD Bank Group, Aimia and CIBC confirm agreements

TORONTO, Sept. 16, 2013 /CNW/ - TD Bank Group (TD) (TSX and NYSE: TD), Aimia 
Inc. (Aimia) (TSX: AIM), and Canadian Imperial Bank of Commerce (CIBC) (TSX 
and NYSE: CM) today confirmed that they have signed agreements under which TD 
will become the primary issuer of Aeroplan Visa credit cards on January 1, 
2014, and will acquire approximately 50% of the existing Aeroplan credit card 
portfolio from CIBC. 
Excellent opportunity for TD 
"This is an excellent opportunity for TD to build on our position as a leading 
North American credit card provider - it solidifies our position as the number 
one credit card issuer in Canada, by outstanding credit card balances. 
Acquiring about half of the existing Aeroplan Visa credit card accounts will 
enable us to grow our business while offering great choice and value to our 
customers," said Ed Clark, Group President and CEO, TD Bank Group. "We look 
forward to welcoming new cardholders to TD as we introduce a full suite of 
co-branded Aeroplan Visa credit cards to complement our already strong line-up 
of cards." 
Commitment to cardholders
For current Aeroplan Visa cardholders, nothing changes this year and no action 
is required. Cardholders can continue to use their existing Aeroplan-branded 
credit cards, earning Aeroplan miles on every purchase. Accumulated miles are 
not affected by any change to the credit card issuer. TD and CIBC will 
communicate directly to cardholders about next steps very soon, to make the 
transition a smooth and comfortable experience. 
In 2014, Aeroplan-branded credit cardholders will be able to benefit from the 
new suite of credit cards, which will offer enhanced accumulation and other 
improvements, along with Aeroplan's new Distinction recognition program. 
Highlights of the agreements
Subject to certain closing conditions, TD expects to acquire approximately 50% 
of CIBC's Aeroplan credit card portfolio, which will primarily include 
accounts held by customers who do not have an existing retail banking 
relationship with CIBC. As Aeroplan's primary credit card issuer beginning 
January 1, 2014, TD will offer new co-branded Aeroplan Visa credit cards and 
will hold the exclusive rights to mass market Aeroplan Visa credit cards. 
TD expects that the agreements with CIBC and Aimia will result in a 
contribution of approximately 10 cents per share to 2014 earnings on an 
adjusted basis, and to be dilutive by approximately 7 cents per share on a 
reported basis. The portfolio is expected to contribute approximately 15 cents 
per share on both a reported and adjusted basis in 2015. At closing, TD's 
Basel III Common Equity Tier 1 ratio is expected to decrease by approximately 
19 basis points on a pro forma basis as at TD's last quarter ending July 31, 
2013 as a result of the transaction. The CIBC portfolio acquisition 
transaction is expected to close in December 2013 and is subject to customary 
closing conditions, including regulatory approvals. 
In connection with the acquisition of the CIBC Aeroplan accounts, TD will pay 
$162.5 million to CIBC. This includes a payment of $50 million on closing, 
reflecting a price of par plus $50 million for the CIBC Aeroplan accounts, as 
well as a commercial subsidy agreement that will see TD pay CIBC a further 
$112.5 million plus HST over three years. TD expects to acquire approximately 
550,000 cardholder accounts, representing approximately $3 billion in card 
balances and $20 billion in annual retail spend. Depending on the 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 potential 
payments of up to $400 million. TD will be responsible for - or entitled to 
receive - up to $300 million of these potential payments. 
Additionally, TD and Aimia have updated their 10-year program agreement. As 
previously announced, TD will make a $100 million upfront payment to Aimia to 
assist in the development and maintenance of the new Distinction program. The 
minimum miles purchase commitment has been updated to a five-year volume 
commitment based on miles purchases by TD and CIBC. These payments by TD, in 
aggregate, would not exceed $95 million. Also, as announced, TD and Aimia will 
undertake a joint marketing spend of approximately $140 million in the first 
four years of the program to support the new Aeroplan Visa co-branded credit 
cards and program features. 
Investor call
An investor call about this announcement will be held at 11:30 a.m. ET and is 
expected to last about 30 minutes. The call will feature remarks by TD 
executives and will be followed by a question-and-answer period. A listen-only 
telephone line will be available at 1-877-974-0445 (toll free). 
A replay of the call will be available from 1:00 p.m. ET on September 16, 2013 
until October 16, 2013 by calling 1-877-289-8525.The passcode is 4640623, 
followed by the pound key. 
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 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$835 billion in assets on July 
31, 2013.The Toronto-Dominion Bank trades under the symbol "TD" on the Toronto 
and New York Stock Exchanges. 
Note on "adjusted" results and non-GAAP measures
TD prepares its consolidated financial statements in accordance with 
International Financial Reporting Standards (IFRS), the current generally 
accepted accounting principles (GAAP), and refers to results prepared in 
accordance with IFRS as the "reported" results. TD also utilizes non-GAAP 
financial measures referred to as "adjusted" results (i.e. reported results 
excluding "items of note", net of income taxes) to assess each of its 
businesses and measure overall performance. The items of note relate to items 
which management does not believe are or would be indicative of underlying 
business performance. TD believes that adjusted results provide the reader 
with a better understanding of how management views the bank's performance. 
Earnings per share on an adjusted basis and items of note are not defined 
terms under GAAP and may not be comparable to similar terms used by other 
issuers. See "How the Bank Reports" in the TD's Third Quarter 2013 Earnings 
News Release and Management's Discussion and Analysis for further 
explanation. For more information on the adjustments to TD's expected 
earnings per share contribution referred to above, as well as the material 
factors and assumptions inherent in TD's expectations for its future Basel III 
Common Equity Tier 1 ratio, see the presentation materials in connection with 
this announcement, available on TD's website at 
http://www.td.com/investor-relations/ir-homepage/ir-homepage/investor-index.jsp
. 
Caution Regarding Forward-Looking Statements
From time to time, TD makes written and/or oral forward-looking statements, 
including in this document, 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 forward-looking 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 
physical, 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 and assumptions regarding forward-looking statements in this 
document
With respect to the program agreement and the proposed purchase of part of the 
existing CIBC card portfolio, there can be no assurance that TD will realize 
the anticipated benefits or results; actual results could differ materially 
from the expectations expressed in the forward-looking statements. Examples of 
material assumptions made by TD in the forward-looking statements, including 
TD's expectations regarding the impact to earnings in 2014 and 2015, include: 
costs to launch the cards; performance of the acquired credit card portfolio; 
ability to attract and retain new credit card accounts; costs associated with 
conversion of accounts; cost of funds; and the amount of migration payments. 
Earnings per share contribution estimates above are based on TD's average 
number of diluted common shares outstanding for the quarter ended July 31, 
2013. 
Other factors that may cause actual results to differ materially from the 
expectations expressed in the forward-looking statements include: higher than 
anticipated costs to launch the cards; lower than anticipated (i) interchange 
rates, account origination, or card usage, (ii) appeal or market acceptance of 
Aeroplan's program, and/or (iii) yields (finance charges/fees); industry 
competition; risks associated with conversion of accounts; cost of funds; 
necessary approvals, and other closing conditions, in respect of the 
acquisition are not received or met; 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. 
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 more 
detailed information, please see the "Risk Factors and Management" section of 
the Management's Discussion and Analysis ("MD&A") in TD's 2012 Annual Report 
as may be updated in subsequently filed quarterly reports to shareholders and 
news releases (as applicable) related the transactions discussed under the 
heading "Significant Events" in the relevant MD&A, which applicable releases 
may be found on td.com. 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 document 
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 financial position, 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.
 

SOURCE  TD Bank Group 
Investors: 
Rudy Sankovic Senior Vice President, Investor Relations 416-308-9030 
Media: 
Ali Duncan Martin Manager, Media Relations 416-983-4412 
Image with caption: "Ed Clark, Group President and CEO, TD Bank Group; Rupert 
Duchesne, Group Chief Executive, Aimia; and Gerry McCaughey, President and 
CEO, CIBC; announce the confirmed agreements between TD, Aimia and CIBC 
regarding Aeroplan-branded Visa credit cards. (CNW Group/TD Bank Group)". 
Image available at:  
http://photos.newswire.ca/images/download/20130916_C7339_PHOTO_EN_30861.jpg 
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CO: TD Investor Relations
ST: Ontario
NI: FIN ORDER MNA  
-0- Sep/16/2013 10:31 GMT
 
 
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