Exchange Income to redeem 5.5% convertibles, pay down facility debt

By Sarah Lizee

Olympia, Wash., Nov. 30 – Exchange Income Corp. intends to redeem its outstanding 5.5% seven-year convertible senior unsecured debentures due Sept. 30, 2019 and pay debt under its credit facility using proceeds from an offering of C$70 million convertible debentures, according to a press release.

The company said it will redeem the 5.5% convertibles after the closing of the new offering, which is expected to be on or about Dec. 20.

The convertibles will be redeemed at par plus accrued interest up to but excluding the redemption date.

Prior to the redemption date, the debentures may be converted at a price of C$36.80 per share.

As of Thursday, there was roughly C$57 million of debentures outstanding.

The company’s stock closed at C$36.92 on Thursday.

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

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