Purchase of GE portfolio positions Element for deeper penetration of the North American commercial helicopter market
TORONTO, Dec. 9, 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 signed a definitive agreement with a subsidiary of GE Capital in the US to acquire a portfolio of finance assets secured by individual helicopters operated by a diversified base of customers across a variety of industries for a purchase price of approximately US$ 245 million.
The portfolio purchase gives Element a very broad and diversified base on which to build its position as a leading financial partner serving the North America commercial helicopter market. The acquired portfolio of assets consists of 59 individual helicopters operated by more than a dozen customers in various commercial lift applications including oil and gas resource development and medevac services. The portfolio has no history of losses and has a credit profile that is in alignment with Element's existing book of aviation financings.
The demand for commercial helicopters in North America is principally driven by applications in the oil and gas industry and for emergency response services (medevac, police and fire suppression).
The transaction is expected to close on or before December 31, 2013 subject to customary conditions precedent.
About Element Financial Corporation
With total assets of approximately $2.7 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.
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 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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