Element Financial Closes Aggregate $560 Million Common Share and Preferred Share Financings /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./ 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 Securities Inc. 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 Contact: John Sadler Senior Vice President (416) 386-1067 ext. 2313 firstname.lastname@example.org Michel Béland Chief Financial Officer (416) 386-1067 ext. 2225 email@example.com To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/December2013/17/c5023.html CO: Element Financial Corporation ST: Ontario NI: FIN LOAN MNA -0- Dec/17/2013 13:59 GMT
Element Financial Closes Aggregate $560 Million Common Share and Preferred Share Financings
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