Element Financial Closes Acquisition of US$348 Million Worth of Helicopter and
Railcar Finance Assets
TORONTO, Dec. 19, 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 closed its previously announced
acquisitions comprised of approximately US$348 million worth of helicopter and
railcar finance assets from GE Capital and Trinity Industries, Inc.
Further to the December 9(th) announcement that Element had entered into a
strategic alliance agreement with Dallas-based Trinity Industries, Inc.
("Trinity") to provide lease financing for up to US$2 billion worth of
railcars over the next two years, the Company confirmed today that it has
closed the acquisition of the first tranche of assets under this agreement
comprised of approximately US$105 million of existing railcar assets currently
under lease to a diversified Trinity customer base.
The Company also confirmed today that it has closed the previously announced
acquisition from GE Capital of a portfolio of finance assets secured by
individual helicopters for approximately US$243 million. The acquired
portfolio of assets consists of 57 individual helicopters operated by 12
customers in various commercial lift applications including oil and gas
resource development and medevac services.
"These two transactions add further scale and scope to Element's position as
one of North America's leading providers of equipment financing with an
established presence in five key business verticals - Commercial Finance,
Vendor Finance, Aviation Finance, Railcar Finance and Fleet Management," said
Steven K. Hudson, Element's Chairman and Chief Executive Officer. "We have
focused on building Element around these core verticals because we see them as
offering very strong growth opportunities over the next several years combined
with attractive yields and high quality credit attributes," added Mr. Hudson.
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 five verticals of the equipment finance
market - Commercial Finance, Vendor Finance, Aviation Finance, Railcar Finance
and Fleet Management.
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 references to expected railcar financings arising from the
Company's strategic alliance agreement with Trinity Industries, Inc. 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/19/2013 19:15 GMT
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