Exchange Income holders convert C$747,000 5.5% senior debentures ahead of redemption

By Susanna Moon

Chicago, Jan. 12 – Exchange Income Corp. said holders had converted C$747,000 principal amount of its 5.5% convertible senior unsecured debentures due Sept. 30, 2019 ahead of the redemption on Thursday.

The debentures were converted into 20,291 common shares at a price of C$36.80 per share, according to an update on Friday.

Exchange Income then redeemed the $56,753,000 of remaining 5.5% convertibles on Thursday.

The company called the convertibles on Dec. 20 for redemption on Jan. 11 at par plus accrued interest up to but excluding the redemption date.

Holders also could convert the debentures into common shares before the redemption date at a price of C$36.80 per share.

Exchange Income stock closed at C$35.11 on Dec. 19.

Funding for the redemption came from the company’s bought deal offering of C$100 million 5.25% convertible unsecured subordinated debentures due 2022.

Remaining proceeds were slated to repay borrowings under the company’s credit facility.

Exchange Income is a Winnipeg, Man.-based acquisition-oriented company focused in two sectors: aviation services and equipment and manufacturing.

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