NEWS RELEASE NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
WINNIPEG, Feb. 9, 2015 /CNW/ - Exchange Income Corporation (TSX: EIF)
(the "Corporation" or "Exchange"), announced today that it has entered
into a new long-term debt facility with its syndicate of banks. The
facility has been increased in size from $335 million to $450 million
and has a four year term. In addition to the increase in the size of
the facility, the banking syndicate has been expanded to include two
new banks. The Toronto-Dominion Bank will continue to serve as the lead
bank in the syndicate. National Bank of Canada, Canadian Imperial Bank
of Commerce, Roynat Inc. and Alberta Treasury Branches remain in the
syndicate and will be joined by Export Development Canada and
Laurentian Bank of Canada as syndicate members. The increased facility
is an endorsement of the core strengths of Exchange's diversified
portfolio of operating companies and Exchange's proven track record of
accretive acquisitions.
"We believe this new debt facility is confirmation of the confidence
that our banking syndicate has in our business model," said Mr. Mike
Pyle, CEO of Exchange. "We have been well served by our financial
partners which have been led by TD Bank since our inception in 2004 and
are excited about the addition of EDC and Laurentian to the syndicate.
The material transactions that we have completed in the last year have
increased the diversity of our operations, significantly improved our
payout ratio and positioned Exchange to execute on our plan of
opportunistic accretive acquisitions and organic growth of our
subsidiary operations while maintaining a strong balance sheet. The new
long-term debt facility will ensure we can move quickly to take
advantage of further opportunities when they are identified."
About Exchange Income Corporation
Exchange Income Corporation is a diversified acquisition-oriented
company, focused in two sectors: 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: Aviation and
Manufacturing. The 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 by Jasper Tank,
Overlanders Manufacturing, Water Blast Manufacturing, Stainless
Fabrication and WesTower Communications in Canada. 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
