Purchase of US$250 million helicopter lease portfolio positions Element as a N.A. industry leader
TORONTO, Nov. 13, 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 entered into an agreement to acquire a $250 million portfolio of finance assets secured by individual helicopters operated by a diversified base of customers across a variety of industries in the U.S.
"This transaction will provide Element with a seasoned portfolio of financial assets and direct access to well-established operators and manufacturers across the US helicopter market," noted Bradley Nullmeyer, President of Element Financial Corporation. "The transaction allows us to take advantage of early renewals, end of lease replacements and upgrade cycles with these customers and manufacturers," added Mr. Nullmeyer.
The purchase will strengthen Element's position as one of the largest participants in the North America helicopter finance market. "Combined with our existing portfolio of helicopter financings, this transaction elevates and secures our position as a North American leader in helicopter finance," noted Tony Bergeron who leads the Company's Aviation Finance business unit. "We expect to increase our penetration of this market by continuing to deliver timely credit decisions, tailored financing solutions and highly competitive product structures to these customers," added Mr. Bergeron.
The portfolio of assets consists of 63 individual helicopters operated by a diversified base of customers across a variety of industries. The portfolio has no history of losses and has a credit profile that is in alignment with Element's exiting book of aviation financings.
"This asset purchase is in line with our business plan and advances our growth strategy," noted Steven K. Hudson, Element's Chairman and CEO. "In addition to giving Element an industry-leading position in the North American helicopter finance market, it adds to our Aviation Finance business unit to strengthen growth in 2014 and beyond," added Mr. Hudson.
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 independent 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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