Exchange Income Corporation Completes Credit Facility Upsize and Extension

Executive Summary

• Exchange Income Corporation closed a $3.5 billion unsecured credit facility, increasing its borrowing capacity by $500 million.
• The facility replaces the prior $3.0 billion secured line, extends maturity to January 26 2030, and provides greater flexibility for M&A, organic growth, and contract expansion with Air Canada.
• Redemption of all outstanding convertible debentures has lowered leverage to its lowest level in over a decade, strengthening the balance sheet.

Key Details

• Facility Size: $3.5 billion (CAD), up $500 million from previous $3.0 billion facility.
• Structure: Unsecured revolving credit facility; replaces secured facility.
• Maturity: Extended to January 26 2030.
• Purpose / Use of Proceeds: To fund investment opportunities, including M&A activity, the recently announced contract expansion with Air Canada, and other organic growth initiatives.
• Redemption Activity: All outstanding convertible debentures have been redeemed; majority converted to equity, reducing aggregate leverage to its lowest in >10 years.
• Syndicate Participants (Joint Bookrunners & Co‑Lead Arrangers): National Bank Capital Markets, Canadian Imperial Bank of Commerce, The Toronto Dominion Bank, Royal Bank of Canada, The Bank of Nova Scotia.
• Additional Lenders: 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., Citibank, N.A.
• Comments – CEO Mike Pyle: Emphasized the transformation of capital structure, low leverage, and ability to quickly execute strategic initiatives.
• Comments – CFO Richard Wowryk: Highlighted oversubscription, removal of security requirement, reduced administrative burden, and welcome of JPMorgan Chase Bank and Citibank to the lender syndicate.

Notable Quotes

“The successful completion of this enhanced credit facility furthers the transformation of the Corporation’s capital structure… Our conservative leverage and increased liquidity have enabled EIC to move quickly when opportunities present themselves.” – Mike Pyle, CEO

“The deal was materially oversubscribed and the lenders removed the requirement for the facility to be secured… The enhanced credit facility provides us with the most available capital we have had in our history.” – Richard Wowryk, CFO