ACE Substantial Issuer Bid Details Released

admin — Tue, 24 Nov 2009 17:56:07 +0000

On November 23, ACE Aviation provided additional details of the $20 million substantial issuer bid (SIB) announced as part of the company’s Q3/09 quarterly earnings release. The offer will expire at 5:00 pm ET on January 6, 2010.
The offer will be conducted as a “modified Dutch auction”, similar to
previous issuer bids at a bid range between $5.80 to $6.50 per share, in increments of $0.10 per share. An issuer bid circular containing further details is expected to be released on November 27.
If the bid is taken up at $6.10, we estimate ACE would redeem 3.28 million shares, increasing the Air Canada shares per ACE share ratio to 2.39 from 2.17 and increasing our undiscounted NAV estimate by 3.5%. The effectiveness of the SIB is reduced as the bid tender price is increased.
We also expect that, similar to recent bids, proceeds from tendering will be treated as a deemed dividend, subjecting investors to certain tax consequences.

ACE Aviation Holdings Inc.

admin — Fri, 10 Jul 2009 03:11:39 +0000

With Air Canada increasing looking as though it will accomplish a number of
critical steps in the next few weeks, we expect there will be further events
that will affect ACE’s value mainly related to events at Air Canada and also
with our expectation that ACE may loan Air Canada up to $150 million.

Air Canada indicated as part of the Aeroplan financing agreement that it
was required to raise at least $600 million in new financing. We believe ACE
Aviation will be part of a consortium of lenders as other lenders will expect a
co-investment with them as a condition of their lending.

We expect ACE shares to come under pressure as transaction-oriented
investors looking for an exit through a SIB will be seeking to exit their
positions as the available cash is used for other purposes and a liquidation
scenario now appears unlikely to materialize in the near term.

TSX Commentary » ACE Aviation Holdings Inc.

ACE Substantial Issuer Bid Details Released

ACE Aviation Holdings Inc.