On March 10, 2023, Bank of Montreal and LoyaltyOne, Co., a subsidiary of Loyalty Ventures Inc., announced the signing of a conditional purchase agreement under which BMO would acquire LoyaltyOne’s AIR MILES Reward Program business.
The acquisition has been proposed as part of LoyaltyOne’s proceeding under the Companies’ Creditors Arrangement Act (Canada) (“CCAA”) commenced in the Ontario Superior Court of Justice (Commercial List). In conjunction with the CCAA filing, Loyalty Ventures and certain affiliated entities have filed voluntary petitions for relief under Chapter 11 of the US Bankruptcy Code.
BMO has agreed to provide a DIP financing facility during the CCAA proceeding and act as stalking horse purchaser in a proposed sale and investment solicitation process (“SISP”) in the CCAA. Completion of the BMO transaction is subject to no other higher or otherwise better offers being submitted in the SISP, CCAA court approval and satisfaction of closing conditions.
Cassels is acting for LoyaltyOne.