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WINNIPEG, June 26, 2018 /CNW/ - Exchange Income
Corporation (TSX: EIF) (the "Corporation") announced today that it
has closed its previously announced bought deal offering (the
"Offering") of 7 Year 5.35% Convertible Unsecured Subordinated
Debentures due June 30, 2025 (the
"Debentures"). At the closing of the Offering, the
Corporation issued $80,500,000
principal amount of Debentures to the underwriters of the Offering,
which includes the exercise of the full $10,500,000 over-allotment option granted to the
underwriters.
Tamara Schock, Chief Financial
Officer of the Corporation, stated that "We are very pleased with
the demand for this Offering. It marks the third securities
offering, common shares or convertible debentures, in the last 18
months where market demand has exceeded the offering and resulted
in the underwriters exercising the over-allotment option or the
offering being upsized. The proceeds of the Offering will be
used primarily to redeem the series EIF.DB.F debentures maturing on
March 31, 2020. We will have no
further maturities of any convertible debentures or syndicated bank
financing until 2021 and will have the necessary available capital
to fund our growing operations for the foreseeable future."
The Offering was co-led by National Bank Financial Inc.,
Laurentian Bank Securities Inc. and CIBC Capital Markets and
included Cormark Securities Inc., Raymond James Ltd., RBC Capital
Markets, Scotiabank, TD Securities Inc., BMO Capital Markets,
Canaccord Genuity Corp., AltaCorp Capital Inc., Macquarie Capital
Markets Canada Ltd. and Wellington-Altus Private Wealth
Inc.
The Corporation intends to use the net proceeds of the Offering
to fund the redemption of its outstanding 7 year 5.35% convertible
senior unsecured debentures maturing on March 31, 2020 (the "March
2020 Debentures") and to repay indebtedness under the credit
facility of the Corporation. The Corporation issued a notice of
redemption to the holders of the March
2020 Debentures on June 13,
2018 to redeem all issued and outstanding March 2020 Debentures on July 17, 2018 (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 March 2020 Debentures
have the option to convert such debentures into common shares of
the Corporation prior to the Redemption Date. The redemption of the
March 2020 Debentures will take place
on July 17, 2018.
The Debentures are listed for trading on the Toronto Stock
Exchange under the symbol "EIF.DB.J".
About Exchange Income Corporation
Exchange Income Corporation is a diversified
acquisition-oriented company, focused in two sectors: aerospace
& 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 (operating as a
division of Perimeter Aviation), Custom Helicopters, Regional One,
Provincial Aerospace and Moncton Flight
College, and an investment in Wasaya Group. The
Manufacturing segment consists of the operations of Overlanders
Manufacturing, Water Blast, Stainless Fabrication, WesTower
Communications, Ben Machine and Quest Window Systems. 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 the 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 the Corporation with the securities regulatory
authorities, available at www.sedar.com.
SOURCE Exchange Income Corporation