WINNIPEG, Oct. 15, 2015 /CNW/ - Exchange Income Corporation (TSX: EIF), ("EIC" or the "Corporation") a diversified, acquisition-oriented company, announced today that it has entered into an amended long-term debt facility. This amendment will increase the size of the Company's existing facility to $550 million from $450 million. The tenure, terms, and pricing of the facility remain unchanged. The Bank of Montreal is joining the banking syndicate and all the current members of the syndicate, consisting of The Toronto-Dominion Bank, National Bank of Canada, Canadian Imperial Bank of Commerce, Roynat Inc., Alberta Treasury Branches, Export Development Canada and Laurentian Bank of Canada, have increased their commitment. The Toronto-Dominion Bank will continue to serve as the lead bank in the syndicate. The addition of a major Canadian bank to the syndicate as well as the increased commitment from each member of the syndicate are strong endorsements of the core strengths of EIC's diversified portfolio of operating companies and EIC's proven track record of accretive acquisitions.
"The increase in the credit facility combined with the recent $75 million share offering that closed on September 17, 2015 together with existing capacity at the end of June 30, 2015 now provide EIC with approximately $300 million in available capital," said Mr. Mike Pyle, CEO of EIC. "Having access to dry powder is critical to our business model as it enables EIC to react quickly when the right opportunities arise, such as the recent acquisitions of Provincial Aerospace and Ben Machine Products. These acquisitions, combined with recent improvements in our operating subsidiaries, have led to a 14% increase in our dividend within the last year. With the completion of both the equity and debt financings, EIC is now well positioned to further execute on our plan of accretive acquisitions and organic growth of our subsidiary operations while maintaining a strong balance sheet."
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, WesTower Communications in Canada and Ben Machine Products. 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
For further information: Mike Pyle, CEO, Exchange Income Corporation, (204) 982-1850, MPyle@eig.ca; Joe Racanelli, Investor Relations, NATIONAL Equicom, (416) 586-1943, JRacanelli@national.ca