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
For further information:
Chief Executive Officer
Exchange Income Corporation
The Equicom Group Inc.
(416) 815-0700 or 1-800-385-5451 ext. 243