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WINNIPEG, Dec. 21 /CNW/ - Exchange Income Corporation (TSX:EIF) (the "Corporation") today announced that it intends to redeem all 9,691 of $1,000 principal amount Series E, 5-year, 9% Subordinate Secured Debentures of the Corporation (the "Series E Debentures") which are currently issued and outstanding. Effective January 25, 2010 (the "Redemption Date"), the Corporation will pay a redemption price of $1,050.35 per Series E Debenture. The redemption price is equal to 101% of the principal amount of each Series E Debenture plus all accrued and unpaid interest on the Series E Debenture up to but excluding the Redemption Date (the "Total Redemption Price"). The Total Redemption Price will be paid to holders upon presentation and surrender of the Series E Debentures called for redemption. Interest on the Series E Debentures will cease to be payable from and after the Redemption Date.
The Corporation is undertaking the redemption in order to strengthen its balance sheet and reduce interest expense.
A formal notice and instructions for the redemption of the Series E Debentures will be forwarded to holders of Series E Debentures in accordance with the provisions of the trust indenture and supplemental trust indenture governing the Series E Debentures.
About Exchange Income Corporation
Exchange Income Corporation is a diversified, acquisition-oriented corporation, 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 Perimeter Aviation LP., Keewatin Air LP and Calm Air International LP and the specialty manufacturing segment consists of Jasper Tank Ltd., Overlanders Manufacturing LP, Water Blast Manufacturing LP, and Stainless Fabrication, Inc. For more information on Exchange Income Corporation, please visit www.exchangeincomecorp.ca.
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, 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.
The Toronto Stock Exchange has neither approved nor disapproved the contents of this press release.
SOURCE Exchange Income Corporation
For further information: For further information: Mike Pyle, President and CEO, Exchange Income Corporation, (204) 982-1850, firstname.lastname@example.org; Alice Dunning or Bruce Wigle, Investor Relations, The Equicom Group Inc., (416) 815-0700 or 1-800-385-5451 ext. 255 or 228, email@example.com or firstname.lastname@example.org