WINNIPEG, Oct. 21, 2014 /CNW/ - Exchange Income Corporation (TSX: EIF), a diversified, acquisition-oriented company focused on opportunities in three sectors (aviation services and equipment, metal manufacturing, and infrastructure services), announced that its subsidiary, Regional One, Inc. has entered into an agreement to acquire, over a twelve to fifteen month period, twelve (12) Bombardier CRJ700 aircraft equipped with CF34-8C5B1 engines from Lufthansa CityLine. Regional One will maximize the value of this transaction by redeploying the acquired assets into the market. The aircraft will be used in a variety of revenue streams which include aircraft sale, aircraft lease, engine sale/lease, component sale and exchange agreements. This acquisition further expands and complements Regional One's already extensive experience and support capabilities for Bombardier aircraft.
About Regional One
Regional One is headquartered in Miami, Florida, and purchases, sells and leases aircraft and aircraft engines, aircraft parts and other related support items worldwide. Its extensive portfolio includes aircraft, engines, avionics, hydraulic and fuel system rotables, LRU components, landing gears, propellers, flight controls and expendables. Regional One also provides consignment services, 24/7 AOG services and other aircraft lease, purchase and sale asset management and advisory services. Regional One is a wholly owned subsidiary of Exchange Income Corporation.
About Lufthansa CityLine
Lufthansa CityLine is a German regional airline based in Munich. It is a wholly owned subsidiary of Lufthansa and member of the Lufthansa Regional network. The airline operates from hubs at Frankfurt Airport and Munich Airport. Lufthansa CityLine employs 2,300 people and serves 77 destinations in 25 countries. For additional information regarding Lufthansa CityLine please visit www.lufthansacityline.com.
About Exchange Income Corporation
Exchange Income Corporation is a diversified acquisition-oriented company, focused in three sectors: aviation services and equipment, metal manufacturing, and infrastructure services. Exchange Income 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.
Exchange Income Corporation currently operates three segments: Aviation, Manufacturing and Infrastructure. The Aviation segment consists of the operations by Perimeter Aviation, Keewatin Air, Calm Air International, Bearskin Lake Air Service, Custom Helicopters and Regional One. The Manufacturing segment consists of the operations by Jasper Tank, Overlanders Manufacturing, Water Blast Manufacturing, and Stainless Fabrication. The Infrastructure segment consists of the operation of WesTower Communications (Canada). For more information on Exchange Income Corporation, please visit www.ExchangeIncomeCorp.ca. Additional information relating to Exchange Income 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, Chief Executive Officer, Exchange Income Corporation, (204) 982-1850, MPyle@eig.ca; Joe Racanelli, Investor Relations, The Equicom Group Inc., (416) 815-0700 or 1-800-385-5451 ext. 243, JRacanelli@tmxequicom.com