Exchange Income Corporation Completes Acquisition of Regional One

WINNIPEG, April 15, 2013 /CNW/ – Exchange Income Corporation (TSX: EIF) (the “Corporation”) is pleased to announce the successful completion of its acquisition of Regional One, Inc., a privately-owned US company that is a leading provider of aircraft and engine aftermarket parts to regional airline operators around the world. The acquisition was first announced on February 28, 2013.

The Corporation paid a total purchase price of US $74.2 million, of which US $13.5 million was paid through the issuance of 494,656 common shares and the balance, US $60.7 million, was financed through the Corporation’s senior credit facility. A portion of the cash and share payments at close were put in escrow, and will be held until certain conditions are met.

The purchase price is subject to an earn-out that could result in additional payments of up to US $9.3 million, through a combination of cash and shares, if Regional One achieves certain EBITDA targets, which would result in a maximum potential purchase price, subject to other adjustments, of USD $83.5 million. Other potential adjustments to the purchase price will be made pending the finalization of the Regional One’s working capital, and an adjustment for taxes.