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WINNIPEG, Feb. 11, 2014 /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 6.00%
Convertible Unsecured Subordinated Debentures due March 31, 2021 (the
"Debentures"). At the closing of the Offering, the Corporation issued
$40,000,000 principal amount of Debentures to the underwriters of the
Offering. The underwriters were also granted an over-allotment option
to purchase up to $6,000,000 principal amount of Debenture at any time
up to 30 days from the date hereof.
The is Offering co-led by National Bank Financial Inc., CIBC and
Laurentian Bank Securities Inc. and included Raymond James Ltd.,
Scotiabank, TD Securities Inc., Canaccord Genuity Corp., AltaCorp
Capital Inc. and Stonecap Securities Inc.
The Corporation intends to use the net proceeds of the Offering to
reduce the indebtedness of the Corporation outstanding under its
revolving credit facility and for general corporate purposes.
The Debentures are listed for trading on the Toronto Stock Exchange
under the symbol "EIF.DB.G". Investors should be aware that the final
short form prospectus of the Corporation relating to the Offering
contained a typographical error as it stated that the Debentures would
be listed under the symbol "EIF.DB.F".
About Exchange Income Corporation
The Corporation is a diversified acquisition-oriented company, focused
on opportunities in the industrial products and transportation sectors
which are ideally suited for public markets except for their size. The
strategy of the Corporation is to invest in profitable,
well-established companies with strong cash flows operating in niche
markets in Canada and/or the United States.
The Corporation is currently operating in two niche business segments:
aviation and specialty manufacturing. The aviation segment consists of
the operations by Perimeter Aviation, Keewatin Air, Calm Air
International, Bearskin Lake Services, Custom Helicopters and Regional
One, and the specialty manufacturing segment consists of the operations
by Jasper Tank, Overlanders Manufacturing, Water Blast Manufacturing,
Stainless Fabrication and WesTower Communications. For more information
on Exchange Income Corporation, please visit www.exchangeincomecorp.ca.
Additional information relating to the Corporation, including all public
filings, is available on SEDAR (www.sedar.com).
Forward-Looking Information:
This news release of the Corporation contains certain statements that
constitute forward-looking information within the meaning of applicable
securities laws ("forward-looking statements"). All statements other
than statements of historical fact contained herein are forward-looking
statements, including, without limitation, statements regarding the
offering and the results, performance, achievements and developments of
the Corporation and/or its subsidiaries. Words such as "believes",
"expects", "will", "may", "could", "intends", "projects",
"anticipates", "plans", "estimates", "continues" or similar words or
the negative thereof are intended to identify forward-looking
statements. Forward-looking statements are necessarily based upon a
number of expectations or assumptions that, while considered reasonable
by management at the time the statements are made, are inherently
subject to significant business, economic and competitive uncertainties
and contingencies. Readers are cautioned to not place undue reliance on
forward- looking statements which only speak as to the date they are
made. Although management believes that the expectations and
assumptions underlying such forward-looking statements are reasonable,
there can be no assurance that such expectations or assumptions will
prove to be correct. A number of factors could cause actual future
results, performance, achievements and developments of the Corporation
and/or its subsidiaries to differ materially from anticipated results,
performance, achievements and developments expressed or implied by such
forward-looking statements. Such factors include, but are not limited
to:(i) risks associated with the offering; (ii) risks specific to the
Corporation, including risks related to the credit facilities of the
Corporation, level of economic growth, state of capital markets,
management of acquisitions, availability of dividends, volatility of
the price of the Corporation's shares, availability of future
financing, growth initiatives by the Corporation, interest rates,
diversification, capital investment, general economic factors,
regulation, investment risk, dilution risk, dependence on key personnel
and income tax issues; (iii) risks specific to the Corporation's
operating subsidiaries, including risks related to seasonality and
cyclicality, restrictions on potential growth of the Corporation's
operating subsidiaries, dependence on key personnel, competition, risk
of liability, management and operations, general uninsured losses,
environmental matters, foreign exchange risk, commodity price risk, raw
material exposure, potential conflicts of interest, labour disruptions,
labour supply and dependence on information systems and technology;
(iv) risks relating to the aviation industry, including fluctuations in
operating results, seasonality and cyclicality, contract with the
Government of Nunavut, fuel costs, compliance with government
regulations, government funding for First Nations health care and
aviation accidents; and (v) risks specifically relating to the
specialty manufacturing industry, including supply dependency,
contracts with distributors, dependence on sales and marketing
organizations, market trends, labour supply and exposure to the Alberta
economy and the energy sector.
The foregoing list of factors is not exhaustive of the factors that may
affect any of the Corporation's forward-looking statements. Risks and
uncertainties regarding the Corporation and its subsidiaries are more
fully discussed in the Corporation's filings with Canadian provincial
securities regulatory authorities, including its most recent annual
information form and management discussion and analysis, copies of
which are available on www.sedar.com. The forward-looking statements contained herein are expressly
qualified in their entirety by this cautionary statement. The
Corporation does not undertake any obligation to update forward-looking
statements.
SOURCE Exchange Income Corporation
