Exchange Income Corporation Announces Early Redemption of 7 Year 5.25% Debentures Due July 31, 2028

Executive Summary

• Exchange Income Corporation (TSX: EIF) has announced the redemption of all outstanding 7 Year 5.25% Convertible Unsecured Subordinated Debentures due July 31, 2028.
• The redemption is effective September 29, 2025, triggered because the market price of EIC’s common shares exceeded 125% of the conversion price ($52.70), allowing the company to exercise its redemption rights under the Trust Indenture.
• Holders who do not convert their debentures prior to the redemption date will receive a cash payment of $1,008.6301370 per debenture, consisting of the $1,000 principal plus accrued interest.

Key Details

• Instrument: 7 Year 5.25% Convertible Unsecured Subordinated Debentures due July 31, 2028.
• Redemption Date: September 29, 2025.
• Reason for Redemption: The market price of EIC’s common shares is greater than 125% of the conversion price of $52.70, permitting redemption per the Trust Indenture dated July 30, 2021.
• Conversion Price: $52.70 per share.
• Total Outstanding Principal: $143,622,000 (representing 143,622 Debentures at $1,000 each).
• Redemption Payment: Holders receiving cash (non-converted) will receive $1,008.6301370 per debenture.
  • Principal: $1,000.00
  • Accrued Interest: $8.6301370 (calculated for the 60-day period from July 31, 2025, to September 29, 2025).
• Interest Cessation: All interest on the Debentures ceases from and after the Redemption Date.
• Action Required: Individual holders are encouraged to contact their financial institutions to submit conversion requests well in advance of the Redemption Date, as cutoff times are controlled by the financial institutions, not the Corporation.
• Tender Instructions: Certificates must be tendered to the indenture trustee, BNY Trust Company of Canada, 1 York Street, 6th Floor, Toronto, Ontario M5J 0B6, Attention: Operations Dept.

Notable Quotes

• No direct quotes from management were included in the text of this release.