14:08:12 EDT Fri 19 Aug 2022
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or Name

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Exchange Income Corp
Symbol EIF
Shares Issued 34,634,015
Close 2019-11-05 C$ 40.19
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Exchange Income arranges $1.3-billion credit facility

2019-11-05 16:20 ET - News Release

Mr. Michael Pyle reports


Exchange Income Corp. has closed on a new $1.3-billion credit facility -- with a $300-million accordion feature -- with a syndicate of banks, an increase from $1.1-billion and $100-million, respectively. This will provide the corporation with access to approximately $900-million in available capital, further strengthening its balance sheet and abilities to capitalize on new opportunities as they arise.

"We have earned the confidence of the capital markets with our consistent strategy, and this new facility is a clear demonstration of that confidence," commented Michael Pyle, chief executive officer of Exchange Income. "This new facility will be a powerful capital source to EIC as we continue to execute on our business model of accretive acquisition and investment in the organic growth of our subsidiaries."

The new facility replaces the existing facility and includes improved pricing on both amounts borrowed under the facility and standby charges paid for any unutilized portion. The corporation's maximum leverage ratio under the new facility has been increased to 4.0 times from 3.25 times and, in addition to an increase in the base facility, it includes an accordion feature, which has increased to $300-million from $100-million compared with the previous facility. The maturity date of the new facility is Nov. 1, 2023.

Darryl Bergman, Exchange Income's chief financial officer, commented: "We are extremely pleased with the continued support received from our lenders. Their interest in this new facility was strong, and it was materially oversubscribed. It should also be noted that it has taken EIC 15 years to utilize approximately $700-million of our current facility. Our aggregate leverage has stayed remarkably constant for 15 years, and we don't intend to change that now."

"It is extremely important that our stakeholders do not interpret this new enhanced facility as a change in our attitude towards debt," added Mr. Pyle. "Maintaining a strong balance sheet has always been a cornerstone of our business strategy, and this remains the case today. Limited leverage and access to capital have enabled our company to move quickly when an opportunity is uncovered. This facility provides us the ability to execute when capital is required and to do so at a reduced cost."

National Bank Financial Inc., Canadian Imperial Bank of Commerce and Toronto-Dominion Bank are co-lead arrangers and joint bookrunners to the new facility. National Bank Financial Inc. is agent, and the following lenders complete the syndicate: Bank of Nova Scotia, ATB Financial, Laurentian Bank of Canada, Bank of Montreal, HSBC Bank Canada, Raymond James Finance Company of Canada Ltd., Royal Bank of Canada and Wells Fargo Bank (North American Canadian branch).

Additional details can be found in the company's third quarter MD&A (management's discussion and analysis), which will be available on the Exchange Income website on Nov. 7, 2019.

About Exchange Income Corp.

Exchange Income is a diversified, acquisition-oriented company that is focused on two sectors: (i) aerospace and aviation services and equipment; and (ii) manufacturing.

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