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 acquisitions comprised of approximately US$348 million worth of helicopter and railcar finance assets from GE Capital and Trinity Industries, Inc. respectively.
Further to the December 9th announcement that Element had entered into a strategic alliance agreement with Dallas-based Trinity Industries, Inc. ("Trinity") to provide lease financing for up to US$2 billion worth of railcars over the next two years, the Company confirmed today that it has closed the acquisition of the first tranche of assets under this agreement comprised of approximately US$105 million of existing railcar assets currently under lease to a diversified Trinity customer base.
The Company also confirmed today that it has closed the previously announced acquisition from GE Capital of a portfolio of finance assets secured by individual helicopters for approximately US$243 million. The acquired portfolio of assets consists of 57 individual helicopters operated by 12 customers in various commercial lift applications including oil and gas resource development and medevac services.
"These two transactions add further scale and scope to Element's position as one of North America's leading providers of equipment financing with an established presence in five key business verticals - Commercial Finance, Vendor Finance, Aviation Finance, Railcar Finance and Fleet Management," said Steven K. Hudson, Element's Chairman and Chief Executive Officer. "We have focused on building Element around these core verticals because we see them as offering very strong growth opportunities over the next several years combined with attractive yields and high quality credit attributes," added Mr. Hudson.
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 five verticals of the equipment finance market - Commercial Finance, Vendor Finance, Aviation Finance, Railcar Finance and Fleet Management.
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 arising from the Company's strategic alliance agreement with Trinity Industries, Inc. 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 Corporation
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