Three 767-300ER freighter aircraft added to Cargojet's fleet to support new long term contracts
TORONTO, June 9, 2014 /CNW/ - Element Financial Corporation (TSX: EFN) ("Element" or the "Company"), one of North America's leading equipment finance companies, today announced that it has entered into an agreement with Cargojet Inc. (TSX: CJT), ("Cargojet") to finance three Boeing 767-300ER freighter aircraft for approximately $100 Million. The transaction will provide Canada's leading supplier of air cargo services with additional capacity to support its growing client base.
"Cargojet has established a dominant market position in Canada servicing long-term contracts for high quality clients," noted Tony Bergeron, President of Element Aviation Finance. "This transaction fits perfectly within Element's aviation portfolio providing exceptional credit quality as well as additional diversification both by region and by customer type," added Mr. Bergeron.
"Cargojet continues to be an industry leader in providing our customers with the highest levels of reliable and competitive air cargo services in the marketplace," said Dr. Ajay K. Virmani, President & CEO of Cargojet Inc. "The new generation, long range, fuel efficient and environmentally friendly aircraft financed by Element through this transaction will enable us to expand the geographic reach and capacity of our network," he added.
The transaction is expected to close on or before June 30, 2014 subject to customary conditions precedent. Capital Canada Limited acted as financial advisor to Cargojet with respect to the transaction.
About Element Financial Corporation
With total assets in excess of $4.2 billion, Element Financial Corporation is one of North America's leading equipment finance companies. Element operates across North America in four verticals of the equipment finance market - Commercial & Vendor Finance, Aviation Finance, Railcar Finance and Fleet Management.
About Cargojet Inc.
Cargojet Inc. is Canada's leading provider of time sensitive overnight air cargo services. Cargojet services 14 major city centers coast to coast each business night. Cargojet operates its network across North America carrying approximately 750,000 pounds of cargo each business night. Cargojet has a fleet of aircraft consisting of B767-300ER, B767-200ER, B757-200ER and B727-200AF long-range freighter aircraft. For more information please visit www.cargojet.com.
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: Cargojet Inc.