Exchange Income Corp. to issue C$400M 5-year bonds +147-150

Exchange Income Corp. to issue C$400M 5-year bonds +147-150

Exchange Income Corp. to Issue C$400M in 5-Year Bonds Amid Investment-Grade Rating Upgrade

Exchange Income Corp., a Canadian firm specializing in aerospace, aviation, and manufacturing operations, is preparing to issue up to C$400 million in five-year bonds as part of its first-ever corporate debt offering. The Winnipeg-based company, which operates businesses ranging from air ambulance services to defense sector component manufacturing, has targeted a debt issuance within a C$300 million to C$500 million range, with a focus on a five- or seven-year maturity structure.

The bond sale follows a recent credit rating upgrade from Morningstar DBRS, which assigned the company a BBB (low) issuer rating with a stable outlook. The rating reflects the firm's "well-established lines of services, albeit limited to niche markets," according to analysts. This investment-grade designation provides Exchange Income with access to lower-cost, long-term financing, a strategic shift highlighted in recent earnings reports.

The company's financial performance has supported this move. For the full year 2025, Exchange Income reported record revenue of C$3.3 billion, a 23% increase, and adjusted EBITDA of C$754 million, up 20% year-over-year. A major capital structure reset, including the conversion of over 90% of convertible debt into equity, reduced leverage to 2.73x, the lowest in approximately 15 years. This deleveraging paved the way for the BBB (low) rating and positions the company to pursue fixed-rate bond financing for future growth.

Executives are set to engage with investors this week, with a potential bond sale expected shortly thereafter. The offering aligns with the company's strategy to optimize its capital structure while funding expansion in high-growth segments, such as its Manufacturing division, which saw a 38% surge in adjusted EBITDA during Q4 2025.

With a stable credit outlook and strong operational momentum, the bond issuance represents a key step in Exchange Income's capital strategy as it seeks to balance growth and financial discipline. Investors will closely watch the terms of the offering and its impact on the company's liquidity profile.

(https://financialpost.com/transportation/exchange-income-corp-preparing-bond-sale): Financial Post
(https://www.bloomberg.com/news/articles/2026-02-23/exchange-income-corp-is-preparing-its-first-bond-sale): Bloomberg
(https://www.bloomberg.com/news/articles/2026-02-23/exchange-income-corp-is-preparing-its-first-bond-sale): Morningstar DBRS (via Bloomberg)
(https://www.ainvest.com/news/exchange-income-record-year-priced-2603/): AInvest.com