WINNIPEG, MANITOBA--(Marketwired - Dec. 1, 2017) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Exchange Income Corporation (TSX:EIF) (the "Corporation") announced today that as a result of investor demand it has upsized
its previously announced offering of convertible unsecured subordinated debentures ("Debentures") from $70,000,000 aggregate
principal amount of Debentures to $100,000,000 aggregate principal amount of Debentures (the "Offering"). This offering is
conducted by a syndicate of underwriters co-led by National Bank Financial Inc., Laurentian Bank Securities Inc. and CIBC Capital
Markets, and including 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
"Underwriters").
The Corporation intends to use the net proceeds from the Offering to fund the redemption of certain debentures as set forth
below and to reduce indebtedness under the credit facility of the Corporation. The Debentures will bear interest from the date of
closing at 5.25% per annum, payable semi-annually in arrears on June 30 and December 31 each year commencing June 30, 2018. The
Debentures will each have a maturity date of December 31, 2022 (the "Maturity Date").
The Debentures will be convertible at the holder's option at any time prior to the close of business on the earlier of the
Maturity Date and the business day immediately preceding the date specified by the Corporation for redemption of the Debentures
into common shares of the Corporation ("Common Shares") at a conversion price of approximately $51.50 per Common Share, being a
conversion rate of 19.4175 Common Shares for each $1,000 principal amount of Debentures, subject to adjustment as provided in the
indenture governing the Debentures.
The Corporation intends to use the net proceeds of the Offering to fund the redemption of the Corporation's 7 year 5.50%
convertible senior unsecured debentures (the "September 2012 Debentures") maturing on September 30, 2019, as required, and to
repay indebtedness under its credit facility. The redemption of the September 2012 Debentures is not conditional upon the
completion of the Offering.
Closing of the Offering is expected to occur on or about December 20, 2017. The Offering is subject to normal regulatory
approvals, including approval of the Toronto Stock Exchange of the listing of the Debentures and the Common Shares to be issued
upon conversion of the Debentures. The Debentures will be offered in each of the provinces of Canada by way of a short form
prospectus, and by way of private placement in the United States to Qualified Institutional Buyers pursuant to Rule 144A.
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.