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Press release from CNW Group

Exchange Income Corporation Announces Closing of Offering of Debentures

Wednesday, May 04, 2011

Exchange Income Corporation Announces Closing of Offering of Debentures08:52 EDT Wednesday, May 04, 2011NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.WINNIPEG, May 4 /CNW/ - Exchange Income Corporation (TSX: EIF) (the "Corporation") announced today that it has closed its previously announced bought deal offering (the "Offering") of 6.25% Series J Convertible Senior Secured Debentures due May 31, 2018 (the "Debentures").  At the closing of the Offering, the Corporation issued $50,000,000 principal amount of Debentures to the underwriters of the Offering.The Corporation has also granted the underwriters an option to purchase up to an additional $7,500,000 aggregate principal amount of Debentures, exercisable for up to 30 days after the closing of the Offering.The underwriters of the Offering were co-led by National Bank Financial Inc., TD Securities Inc. and Wellington West Capital Inc. and included CIBC World Markets Inc., Scotia Capital Inc., Raymond James Ltd., Canaccord Genuity Corp., Laurentian Bank Securities Inc., 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 Exchange Income 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 Perimeter Aviation LP, Keewatin Air LP, Calm Air International LP and Bearskin Lake Air Service LP, and the specialty manufacturing segment consists of Jasper Tank Ltd., Overlanders Manufacturing LP, Water Blast Manufacturing LP, Stainless Fabrication, Inc. and WesTower Communications.  For more information on Exchange Income Corporation, please visit www.exchangeincomecorp.ca.Additional information relating to the Corporation, including all public filings, is available on SEDAR (www.sedar.com).For further information: Mike Pyle President and CEO Exchange Income Corporation (204) 982-1850 mpyle@eig.ca Joe Racanelli Investor Relations The Equicom Group Inc. (416) 815-0700 Ext. 243 jracanelli@equicomgroup.com