Exchange Income Corporation completes acquisition of Regional One

Victoria
By Victoria April 16, 2013 14:12

Exchange Income Corporation completes acquisition of Regional One

Exchange Income Corporation has completed its acquisition of Regional One, a privately owned US company that provides 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 US $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.

Victoria
By Victoria April 16, 2013 14:12
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