Exchange Income upsizes 5.25% five-year convertibles to C$100 million

By Angela McDaniels

Tacoma, Wash., Dec. 1 – Exchange Income Corp. upsized its 5.25% convertible subordinated debentures due 2022 to C$100 million from C$70 million due to investor demand, according to a company news release.

As previously reported, the company priced the convertibles with an initial conversion premium of 40% on a bought-deal basis after the market close Thursday.

The deal has a C$10.5 million greenshoe and was brought to market by a syndicate of underwriters co-led by National Bank Financial Inc., Laurentian Bank Securities Inc. and CIBC Capital Markets.

The conversion price is C$51.50, and the conversion rate is 19.4175 shares per C$1,000 principal amount.

Proceeds will be used to redeem the company’s outstanding 5.5% convertible notes due 2019 and to pay down debt under its credit facility.

The convertibles are being offered in Canada and under Rule 144A in the United States.

Exchange Income is a Winnipeg, Man.-based aerospace and aviation acquisition company.

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