Exchange Income Corporation Announces Investment Grade Corporate Credit Rating

Executive Summary

• Exchange Income Corporation received its first investment‑grade corporate credit rating of BBB (low) with a stable outlook from Morningstar DBRS.
• The rating opens the possibility for future access to the Canadian corporate bond market, supporting the company’s growth strategy and upcoming M&A, aerospace contract bids, and organic initiatives.
• Over the past 15 months the company redeemed $425 million of convertible debentures, reducing leverage to its lowest level in more than a decade and positioning it to replace that debt with lower‑cost fixed‑rate financing.

Key Details

• Rating: BBB (low) investment grade, stable outlook – first corporate credit rating for EIC.
• Implication: Enables potential issuance of corporate bonds in Canada, enhancing capital‑raising flexibility for growth projects.
• Redeemed Debt: $425 million of convertible debentures retired; >90 % converted to equity.
• Leverage Impact: Aggregate leverage ratio now at its lowest point in over ten years.
• Future Financing Strategy: Anticipated replacement of redeemed convertible debentures with alternative fixed‑rate debt at a lower cost of capital.
• Credit Rating Advisor: RBC Capital Markets acted as rating advisor during the process.

Notable Quotes

• Mike Pyle, CEO: “The receipt of an investment grade rating is a significant milestone…provides us with the ability to access the Canadian bond market in the future and continue to execute on our strategic initiatives.”
• Richard Wowryk, CFO: “We completed the redemption of $425 million in convertible debentures…our aggregate leverage ratio is at its lowest point in more than a decade. Obtaining an investment grade corporate rating is validation of the work our team has been doing…”