Exchange Income Corporation completes $100M debenture offering

Exchange Income Corporation



News Release

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Exchange Income Corporation Announces Closing of $100 Million Debenture Offering

WINNIPEG, Manitoba – December 20, 2017 – Exchange Income Corporation (TSX: EIF) (the “Corporation”) announced today that it has closed its previously announced bought deal offering (the “Offering”) of 5 Year 5.25% Convertible Unsecured Subordinated Debentures due December 31, 2022 (the “Debentures”). At the closing of the Offering, the Corporation issued $100,000,000 principal amount of Debentures to the underwriters of the Offering.

The Offering was co-led by National Bank Financial Inc., Laurentian Bank Securities Inc. and CIBC World Markets Inc. and included BMO Capital Markets, RBC Capital Markets Inc., Scotiabank, TD Securities Inc., Cormark Securities Inc., Raymond James Ltd., AltaCorp Capital Inc., Canaccord Genuity Corp. and Macquarie Capital Markets Canada Ltd.

The Corporation intends to use the net proceeds of the Offering to fund the redemption of the 7 year 5.50% convertible senior unsecured debentures maturing on September 30, 2019 (the “September 2012 Debentures”) and to repay indebtedness under its credit facility. The Corporation issued a notice of redemption to the holders of the September 2012 Debentures on December 7, 2017 to redeem all issued and outstanding September 2012 Debentures on January 11, 2017 (the “Redemption Date”) at a redemption price equal to their principal amount, plus accrued and unpaid interest thereon up to, but excluding, the Redemption Date. Holders of the September 2012 Debentures have the option to convert such debentures into common shares of the Corporation prior to the Redemption Date.

The Debentures are listed for trading on the Toronto Stock Exchange under the symbol “EIF.DB.I”.

About Exchange Income Corporation

Exchange Income Corporation is a diversified acquisition-oriented company, focused in two sectors: aerospace and aviation services and equipment, and manufacturing. The Corporation uses a disciplined acquisition strategy to identify already profitable, well-established companies that have strong management teams, generate steady cash flow, operate in niche markets and have opportunities for organic growth.

The Corporation currently operates two segments: Aerospace & Aviation and Manufacturing. The Aerospace & Aviation segment consists of the operations by Perimeter Aviation, Keewatin Air, Calm Air International, Bearskin Lake Air Service, Custom Helicopters, Regional One and Provincial Aerospace. The Manufacturing segment consists of the operations of Overlanders, Water Blast, Stainless Fabrication, WesTower Communications, Ben Machine and Quest. For more information on the Corporation, please visit www.ExchangeIncomeCorp.ca. Additional information relating to the Corporation, including all public filings, is available on SEDAR (www.sedar.com).

For further information, please contact:

Mike Pyle Heidi
Chief Executive Officer
Exchange Income Corporation
(204) 982-1850
MPyle@eig.ca

Christensen Brown
Investor Relations
NATIONAL Equicom
(416) 848-1389
hchristensenbrown@national.ca