Element Financial Closes New US$600 Million Credit Facility
TORONTO, Dec. 19, 2013 /CNW/ - Element Financial Corporation (TSX:EFN) ("Element" or the "Company"), one of North America's leading equipment finance companies, today announced that it has closed its previously announced new US$600 million committed debt facility, underwritten by BMO Capital Markets and a syndicate of financial institutions that includes the participants in the Company's Senior Secured Credit Facility. This facility was established to provide bridge financing for railcar leases originated through Element's recently announced strategic alliance with Trinity Industries Inc. while the Company develops an asset backed securitization structure to permanently fund originated railcar leases under this alliance.
"This new credit facility, together with the more than $560 million of additional equity capital raised through our most recent offering of common and preferred shares, provides Element with a broadly-based and diversified capital structure to fund our expected near term growth in finance assets," said Steven K. Hudson, Element's Chairman and Chief Executive Officer.
About Element Financial Corporation
With total assets of approximately $3.3 billion, Element Financial Corporation is one of North America's leading equipment finance companies. Element operates across North America in three verticals of the equipment finance market - Element Capital provides large ticket equipment financing, Element Finance serves the mid-ticket equipment finance market and Element Fleet provides vehicle fleet leasing and management solutions.
Forward Looking Statements
This release includes forward-looking statements regarding Element and its business. Such statements are based on the current expectations and views of future events of Element's management. In some cases the forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "plan", "anticipate", "intend", "potential", "estimate", "believe" or the negative of these terms, or other similar expressions intended to identify forward-looking statements. Forward-looking statements in this release include references to expected railcar financings and the use of proceeds from the new debt facility. The forward-looking events and circumstances discussed in this release may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting Element, including risks regarding the equipment finance industry, economic factors and many other factors beyond the control of Element. No forward-looking statement can be guaranteed. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement or information. Accordingly, readers should not place undue reliance on any forward-looking statements or information. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Element undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
SOURCE Element Financial CorporationFor further information:
Senior Vice President
(416) 386-1067 ext. 2313
Chief Financial Officer
(416) 386-1067 ext. 2225