Exchange Income Corporation Announces Closing of $600 Million Offering of Investment Grade Senior Unsecured Notes

Executive Summary

• Exchange Income Corporation successfully closed a private‑placement offering of $600 million aggregate principal amount of 4.324% senior unsecured notes due March 13, 2031.
• Net proceeds will be used to repay existing credit‑facility indebtedness and for general corporate purposes, supporting the company’s growth strategy and maintaining a low leverage profile.
• The notes received a final BBB (low) rating with a stable trend from Morningstar DBRS, marking EIC’s inaugural transaction in the Canadian investment‑grade bond market.

Key Details

• Offering size: $600 million aggregate principal amount.
• Instrument: 4.324% senior unsecured notes due March 13, 2031.
• Placement method: Private placement in each Canadian province under prospectus exemptions.
• Lead agents/bookrunners: RBC Capital Markets, CIBC Capital Markets, National Bank Capital Markets.
• Use of proceeds:
• Repayment of existing indebtedness under the corporation’s credit facilities.
• General corporate purposes, including organic growth initiatives and potential acquisitions.
• Rating: Final rating of BBB (low) with a stable trend assigned by Morningstar DBRS.
• CEO comment (Mike Pyle): Highlights the significance of completing an inaugural Canadian investment‑grade bond transaction, added liquidity for growth/acquisitions, and resilience amid economic turbulence.
• CFO comment (Richard Wowryk): Emphasizes modernization of the balance sheet, replacement of previously redeemed convertible debentures, reduction of credit facility debt, and maintenance of a pro‑forma aggregate leverage ratio at 15‑year lows.

Notable Quotes

“We are excited to have completed our inaugural transaction within the Canadian investment grade bond market… The added liquidity at a fixed rate will be available to fund the next stage of EIC’s growth…” – Mike Pyle, CEO

“The addition of investment grade bonds into our capital structure modernizes our balance sheet… The net proceeds of the Offering will reduce our credit facility debt, maintaining our pro‑forma aggregate leverage ratio at 15‑year lows.” – Richard Wowryk, CFO