Alliance Data Systems to Spin off Card Services, Loyalty Businesses
08:02 AM EDT, 05/12/2021 (MT Newswires) -- Alliance Data Systems (ADS) plans to spin off its LoyaltyOne segment, which consists of its Canadian Air Miles reward program and Netherlands-based BrandLoyalty business.
The tax-free spinoff is expected to be completed by year end. It will result in two independent, US-based, publicly traded companies, Alliance Data and "Spinco."
After the spin off, Alliance Data stockholders will own shares of both companies, with Alliance Data retaining a minority stake in Spinco.
At the time of the spinoff, Spinco expects to complete a debt financing and dividend the net proceeds to Alliance Data, which will use it to retire a part of its corporate debt.
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