TORONTO, July 3, 2013 /CNW/ - Element Financial Corporation (TSX: EFN) ("Element" or the "Company"), one of North America's leading independent equipment finance companies, today announced that it has commenced funding through the previously announced securitization platform, Element Equipment Finance Fund (the "Fund"), with the purchase on June 28, 2013 of US$48.5 million in unrated notes (the "Notes") by a US-based investment management firm.
The Notes are backed by a first priority security interest in loans and leases relating to fixed wing and rotary aviation equipment deployed by North American-based operators. The Company anticipates selling subsequent tranches of notes in the Fund to institutional investors with increasingly diversified risk/return objectives as credit agencies assign ratings to future notes issued by the Fund.
"This funding platform provides Element with an additional source of capital that is customized for the higher dollar value financing transactions originated by our large-ticket business unit - Element Capital," noted Steven K. Hudson, Element's Chairman and CEO. "The Fund not only offers improved economic returns for Element from these transactions, but also provides us with competitive advantages over the more time consuming syndication structures that were typically used to fund the acquisition of these types of assets."
Guggenheim Securities, LLC acted as Element's financial advisor and agent in the transaction.
About Element Financial Corporation
With total assets of approximately C$2.4 billion, Element Financial Corporation is one of North America's leading independent equipment finance companies. Element operates across North America in three verticals of the equipment finance market - Element Capital provides large ticket equipment leasing, Element Finance serves the mid-ticket equipment finance market and Element Fleet provides vehicle fleet leasing and management solutions.
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. The forward-looking events and circumstances discussed in this release, including reference to the issuance of subsequent tranches of notes, the availability of third party ratings on the notes and/or the sale of notes to additional institutional investors may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting the company. 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 Corporation
Senior Vice President
Corporate Affairs & Investor Relations
(416) 386-1067 ext. 2313
Chief Financial Officer
(416) 386-1067 ext. 2225