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WINNIPEG, Dec. 20, 2017 /CNW/ - 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).
Caution concerning forward-looking statements
The statements contained in this news release that are
forward-looking are based on current expectations and are subject
to a number of uncertainties and risks, and actual results may
differ materially. These uncertainties and risks include, but are
not limited to, the dependence of Exchange Income Corporation on
the operations and assets currently owned by it, the degree to
which its subsidiaries are leveraged, the fact that cash
distributions are not guaranteed and will fluctuate with the
Corporation's financial performance, dilution, restrictions on
potential future growth, the risk of shareholder liability,
competitive pressures (including price competition), changes in
market activity, the cyclicality of the industries, seasonality of
the businesses, poor weather conditions, and foreign currency
fluctuations, legal proceedings, commodity prices and raw material
exposure, dependence on key personnel, and environmental, health
and safety and other regulatory requirements. Further information
about these and other risks and uncertainties can be found in the
disclosure documents filed by Exchange Income Corporation with the
securities regulatory authorities, available at
www.sedar.com.
SOURCE Exchange Income Corporation