Element Financial Closes Aggregate $560 Million Common Share and Preferred
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE
This news release does not constitute an offer to sell or a solicitation of an
offer to buy any of the securities in the United States. The securities have
not been and will not be registered under the United States Securities Act of
1933, as amended (the "U.S. Securities Act") or any state securities laws and
may not be offered or sold within the United States or to U.S. Persons unless
registered under the U.S. Securities Act and applicable state securities laws
or an exemption from such registration is available.
TORONTO, Dec. 17, 2013 /CNW/ - Element Financial Corporation (TSX:EFN)
("Element" or the "Company"), one of North America's leading equipment finance
companies, announced today that it has closed its previously announced Common
Share and Cumulative 5-Year Rate Reset Preferred Share financings.
Element issued, on a bought deal basis, 33,465,000 Common Shares at a price of
$13.75 per Common Share for gross proceeds of $460,143,750 (the "Common Share
Offering") and 4,000,000 6.60% Cumulative 5-Year Rate Reset Preferred Shares
at a price of $25.00 per Preferred Share for gross proceeds of $100,000,000
(the "Preferred Share Offering") for aggregate gross proceeds of $560,143,750.
The Common Share Offering was conducted by a syndicate of underwriters co-led
by GMP Securities L.P, BMO Capital Markets, CIBC World Markets and RBC Capital
Markets that included Credit Suisse Securities (Canada), Inc., National Bank
Financial Inc., TD Securities Inc. and Cormark Securities Inc. The Preferred
Share Offering was conducted by a syndicate of underwriters co-led by GMP
Securities L.P, National Bank Financial Inc., BMO Capital Markets, CIBC World
Markets, RBC Capital Markets and TD Securities Inc. that included Manulife
The Common Share Offering included the exercise in full by the underwriters of
a 15% over-allotment option for an additional 4,365,000 Common Shares at a
price of $13.75 per Common Share for gross proceeds of $60,018,750.
The net proceeds of the Common Share Offering and Preferred Share Offering
will be used to originate and finance, directly or indirectly, finance assets
(including helicopter finance assets to be acquired under its previously
announced transaction with GE Capital Corporation and railcar assets to be
financed under its previously announced strategic alliance with Trinity
Industries Inc.) and for general corporate purposes.
"We have visibility on near term growth opportunities across our five business
verticals and expect to begin deploying this capital on behalf of our
investors commencing in the current quarter," said Steven K. Hudson, Element's
Chairman and Chief Executive Officer.
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 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.
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 those related to the use of proceeds from the Common Share
Offering and Preferred Share Offering, including the completion of the
transaction with GE Capital Corporation and financing of assets under the
strategic alliance with Trinity Industries. 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
John Sadler Senior Vice President (416) 386-1067 ext. 2313
Michel Béland Chief Financial Officer (416) 386-1067 ext. 2225
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-0- Dec/17/2013 13:59 GMT
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