Enhanced liquidity to propel next phase of growth

Company Website: https://www.exchangeincomecorp.ca/
WINNIPEG, Manitoba -- (Business Wire)

Exchange Income Corporation (TSX: EIF) (“EIC” or the “Corporation”) a diversified, acquisition-oriented company focused on opportunities in the Aerospace & Aviation and Manufacturing segments, announced today it has closed on a new $3.5 billion credit facility, representing an increase in size of $500 million. All amounts are in Canadian currency.

The new credit facility replaces the existing facility and includes an increase in commitments under the facility from $3.0 billion to $3.5 billion. In addition to the increased size of the facility, the terms and the conditions included within the facility are now more flexible than the Corporation’s previous credit facility, including moving from a secured facility to an unsecured facility. The maturity date of the facility has also been extended to January 26, 2030.

Mike Pyle, CEO of EIC, commented, “The successful completion of this enhanced credit facility furthers the transformation of the Corporation’s capital structure that has been ongoing for more than a year. The Corporation has redeemed all its outstanding convertible debentures, with the significant majority of those converting to equity. The equity from these conversions has reduced aggregate leverage to the lowest it has been in more than a decade and sets the Corporation up to use its credit facility to fund investment opportunities in front of it. Strong investment opportunities in M&A, our recently announced contract expansion with Air Canada, and other meaningful organic growth opportunities all drove the Corporation to seek increased liquidity at this time. This enhanced facility does not mean that we are changing our conservative attitude on debt and leverage. Maintaining a strong balance sheet has always been a cornerstone of our business strategy and that remains the case today. Our conservative leverage and increased liquidity have enabled EIC to move quickly when opportunities present themselves, and this enhanced facility provides us with the ability to continue to execute on our strategic initiatives.”

Richard Wowryk, CFO of EIC, commented, “I want to thank our credit facility members. We have strong relationships with our banking partners and truly appreciate their support. As a testament to the confidence our lenders have in our business model, the deal was materially oversubscribed and the lenders removed the requirement for the facility to be secured. The removal of security as well as the revised terms and conditions reduces administrative burdens and provides greater flexibility for the Corporation as we continue to position our capital structure for the next stage of our growth. Since EIC’s inception, prudent capital planning has been one of the keys to EIC’s success, and the enhanced credit facility provides us with the most available capital we have had in our history. Finally, I want to welcome JPMorgan Chase Bank and Citibank to our syndicate of lenders.”

National Bank Capital Markets, acting as Administrative Agent, Canadian Imperial Bank of Commerce, and The Toronto Dominion Bank are Joint Bookrunners to the new facility. National Bank Capital Markets, Canadian Imperial Bank of Commerce, The Toronto Dominion Bank, Royal Bank of Canada, and The Bank of Nova Scotia are Co-Lead Arrangers for the new facility. The follow lenders complete the syndicate; Bank of Montreal, Wells Fargo Bank, N.A., Bank of America, N.A., Fédération des caisses Desjardins du Québec, JPMorgan Chase Bank, N.A., ATB Financial, Raymond James Finance Company of Canada Ltd., and Citibank, N.A.

About Exchange Income Corporation

Exchange Income Corporation is a diversified acquisition-oriented company, focused in two segments: Aerospace & Aviation 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. 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.sedarplus.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. Many of these forward-looking statements may be identified by looking for words such as “believes”, “expects”, “will”, “may”, “intends”, “projects”, “anticipates”, “plans”, “estimates”, “continues” and similar words or the negative thereof. These uncertainties and risks include, but are not limited to, external risks, operational risks, financial risks and human capital risks. External risks include, but are not limited to, risks associated with economic and geopolitical conditions, competition, government funding for Indigenous health care, access to capital, market trends and innovation, general uninsured loss, climate, acts of terrorism, armed conflict, labour and/or social unrest, pandemic, level and timing of government spending, government-funded programs and environmental, social and governance. Operational risks include, but are not limited to, significant contracts and customers, operational performance and growth, laws, regulations and standards, acquisitions (including receiving any requisite regulatory approvals thereof), concentration and diversification, maintenance costs, access to parts and relationships with key suppliers, casualty losses, environmental liability, dependence on information systems and technology, cybersecurity, international operations, fluctuations in sales prices of aviation related assets, fluctuations in purchase prices of aviation related assets, warranty, performance guarantees, global offset and intellectual property risks. Financial risks include, but are not limited to, availability of future financing, income tax matters, commodity risk, foreign exchange, interest rates, credit facility and the trust indentures, dividends, unpredictability and volatility of securities pricing, dilution and other credit risk. Human capital risks include, but are not limited to, reliance on key personnel, employees and labour relations and conflicts of interest.

Except as required by Canadian Securities Law, Exchange Income Corporation does not undertake to update any forward-looking statements; such statements speak only as of the date made. 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.sedarplus.ca.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260126975427/en/

Contacts:

For further information, please contact:
Mike Pyle
Chief Executive Officer
Exchange Income Corporation
(204) 982-1850
MPyle@eig.ca

Pam Plaster
Vice President, Investor Development
Exchange Income Corporation
(204) 953-1314
PPlaster@eig.ca

Source: Exchange Income Corporation