Diversified Royalty Amends AIR MILES License Agreement with BMO
Diversified Royalty (BEVFF) announced that its wholly-owned subsidiary AM Royalties Limited Partnership has entered into an amendment agreement (with Air Miles Loyalty and the Bank of Montreal (BMO) to amend the terms of the two license agreements pursuant to which the AIR MILES trademarks and related intellectual property are licensed to Air Miles. The terms of Licenses have been amended to provide a 10-year, fixed annual royalty payment of $3,925,000, paid quarterly. The royalty will grow at a rate of 2.42% per annum commencing on February 1, 2027, and each February 1st thereafter during the term. The royalty payments are now guaranteed by BMO. AM LP will have the right to sell, license or otherwise monetize the AIR MILES trademarks to any other party on or after February 1, 2032. Air Miles will have the right on or after February 1, 2032, to buy-out the remaining term of the Licenses and acquire the intellectual property related to the AIR MILES(R) Reward Program, but not the AIR MILES trademarks, for a cash payment equal to the net present value of the remaining royalty payments at such time.
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Municipality Finance Plc Issues $500 Million Benchmark Bond
- Benchmark Bond Issuance: Municipality Finance Plc is set to issue a $500 million benchmark bond on January 21, 2026, maturing on February 4, 2030, with an interest rate of Compounded SOFR plus 100 basis points, indicating the company's active engagement in capital markets.
- Funding Program Context: This issuance is part of MuniFin's €50 billion debt issuance program, reflecting the company's ongoing strategy to leverage international capital markets to finance socially responsible investment projects.
- Exchange Listing Application: MuniFin has applied for the benchmark bond to be listed on the Nasdaq Helsinki, with public trading expected to commence on January 21, 2026, enhancing its market liquidity and attractiveness to investors.
- Joint Lead Managers: The bond issuance is managed by Bank of Montreal, Citigroup Global Markets, and RBC Capital Markets, demonstrating strong market confidence and support for MuniFin's debt instruments.
The Potential Consequences of Attacking the Fed
Trump Administration's Influence: The Trump administration's attempts to pressure the Federal Reserve into lowering interest rates may not achieve the intended results.
Potential Backfire: These efforts could potentially backfire, delaying the anticipated rate cuts that both central bank officials and the markets expect for the year.
