Exchange Income Corporation Announces Closing of Offering of Debentures

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WINNIPEG, Sept. 19, 2012 /CNW/ - Exchange Income Corporation (TSX: EIF) (the "Corporation") announced today that it has closed its previously announced bought deal offering (the "Offering") of 7 Year 5.50% Convertible Unsecured Subordinated Debentures due September 30, 2019 (the "Debentures").  At the closing of the Offering, the Corporation issued $57,500,000 principal amount of Debentures to the underwriters of the Offering. This amount included $7,500,000 principal amount of Debentures exercised by the underwriters pursuant to an over-allotment option granted to them by the Corporation.

The underwriters of the Offering were co-led by National Bank Financial Inc. and CIBC World Markets Inc. and included Laurentian Bank Securities Inc., TD Securities Inc., Raymond James Ltd., Scotia Capital Inc., Canaccord Genuity Corp., PI Financial Corp. and Stonecap Securities Inc.

The Corporation intends to use the net proceeds of the Offering to reduce the indebtedness of the Corporation outstanding under its revolving credit facility and for general corporate purposes.

About Exchange Income Corporation                         

The Corporation is a diversified acquisition-oriented company, focused on opportunities in the industrial products and transportation sectors which are ideally suited for public markets except for their size. The strategy of the Corporation is to invest in profitable, well-established companies with strong cash flows operating in niche markets in Canada and/or the United States.

The Corporation is currently operating in two niche business segments: aviation and specialty manufacturing. The aviation segment consists of the operations by Perimeter Aviation, Keewatin Air, Calm Air International, Bearskin Lake Air Service, and Custom Helicopters, and the specialty manufacturing segment consists of the operations by Jasper Tank, Overlanders Manufacturing, Water Blast Manufacturing, Stainless Fabrication and WesTower Communications. 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.

Caution Concerning Forward-Looking Statements

This news release of Exchange Income Corporation (the "Corporation") contains certain statements that constitute forward-looking information within the meaning of applicable securities laws ("forward-looking statements").  All statements other than statements of historical fact contained herein are forward-looking statements, including, without limitation, statements regarding the results, performance, achievements and developments of the Corporation and/or its subsidiaries. Words such as "believes", "expects", "will", "may", "could", "intends", "projects", "anticipates", "plans", "estimates", "continues" or similar words or the negative thereof are intended to identify forward-looking statements. Forward-looking statements are necessarily based upon a number of expectations or assumptions that, while considered reasonable by management at the time the statements are made, are inherently subject to significant business, economic and competitive uncertainties and contingencies.  Readers are cautioned to not place undue reliance on forward-looking statements which only speak as to the date they are made.  Although management believes that the expectations and assumptions underlying such forward-looking statements are reasonable, there can be no assurance that such expectations or assumptions will prove to be correct.  A number of factors could cause actual future results, performance, achievements and developments of the Corporation and/or its subsidiaries to differ materially from anticipated results, performance, achievements and developments expressed or implied by such forward-looking statements.  Such factors include, but are not limited to: (i) risks specific to the Corporation, including risks related to the credit facilities of the Corporation, level of economic growth, state of capital markets, management of acquisitions, availability of dividends, volatility of the price of the Corporation's shares, availability of future financing, growth initiatives by the Corporation, interest rates, diversification, capital investment, general economic factors, regulation, investment risk, dilution risk, dependence on key personnel and income tax issues; (ii) risks specific to the Corporation's operating subsidiaries, including risks related to seasonality and cyclicality, restrictions on potential growth of the Corporation's operating subsidiaries, dependence on key personnel, competition, risk of liability, management and operations, general uninsured losses, environmental matters, foreign exchange risk, commodity price risk, raw material exposure, potential conflicts of interest, labour disruptions, labour supply and dependence on information systems and technology; (iii) risks relating to the aviation industry, including fluctuations in operating results, seasonality and cyclicality, contract with the Government of Nunavut, fuel costs, compliance with government regulations, government funding for First Nations health care and aviation accidents; and (iv) risks specifically relating to the specialty manufacturing industry, including supply dependency, contracts with distributors, dependence on sales and marketing organizations, market trends, labour supply and exposure to the Alberta economy and the energy sector.

The foregoing list of factors is not exhaustive of the factors that may affect any of the Corporation's forward-looking statements.  Risks and uncertainties regarding the Corporation and its subsidiaries are more fully discussed in the Corporation's filings with Canadian provincial securities regulatory authorities, including its most recent annual information form and management discussion and analysis, copies of which are available on www.sedar.com.  The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement.  The Corporation does not undertake any obligation to update forward-looking statements.

SOURCE: Exchange Income Corporation

Mike Pyle
President & CEO 
Exchange Income Corporation 
Phone: [phone] 
[email protected] 

Joe Racanelli
Investor Relations
The Equicom Group Inc.
Phone: [phone] Ext. 243
[email protected]