Completion of the Sale of its Service Finance Business TORONTO, Dec. 06, 2021 (GLOBE NEWSWIRE) -- ECN Capital Corp. (TSX: ECN) (“ECN Capital” or the “Company”) is pleased to announce that it has closed its previously announced sale to Truist Bank of all of the issued and outstanding equity interests in each of Service Finance Company, LLC and Service Finance Holdings, LLC, each a wholly-owned, indirect subsidiary of the Company, for cash proceeds of US$2 billion (the “Service Finance Sale”).
“The closing of the Service Finance transaction marks a key milestone for ECN,” said Steven Hudson, CEO of ECN Capital Corp. “I want to thank all of the team members at Service Finance for their remarkable accomplishments. We are thrilled to have sold the business to a great partner – Truist is the best possible buyer to take Service Finance to the next level and continue the phenomenal momentum for years to come.”
In connection with the closing of the Service Finance Sale, the board of directors of the Company (the “Board”) today declared a distribution to the holders of common shares of the Company (the “Common Shares”) of the net proceeds received from the Service Finance Sale, amounting to a distribution of C$7.50 per Common Share (the “Distribution”).
The Distribution will be comprised of a return of capital in the aggregate amount of C$1,010,500,000, which represents C$4.14 per Common Share (the “Return of Capital”), with the remainder in the form of a special dividend in the amount of C$3.36 per Common Share (the “Special Dividend”).1 The Special Dividend is designated to be an eligible dividend for purposes of section 89(1) of the Income Tax Act (Canada).
In connection with the Return of Capital, the Board confirmed a reduction in the stated capital of the Common Shares by an aggregate amount equal to C$1,010,500,000 (the “Stated Capital Reduction”), which Stated Capital Reduction was previously approved by holders of Common Shares at a special meeting held on December 2, 2021.
The Distribution is scheduled to be paid on December 22, 2021 (the “Payment Date”) to holders of Common Shares of record as of the close of business on December 15, 2021 (the “Record Date”). Subject to confirmation from the Toronto Stock Exchange, ECN Capital expects the Common Shares to commence trading on a “due bill” basis at the opening of trading on December 14, 2021 and to commence trading “ex-distribution” on December 23, 2021. The due bill redemption date will be December 24, 2021.
About Due Bill Trading
Due bills represent entitlements to cash and will attach to the Common Shares between the first trading day prior to the Record Date and the Payment Date, allowing Common Shares to carry the value of the entitlement to the Distribution until it is paid. When due bills are used, the ex-distribution date is deferred to the first trading day after the Payment Date.
About ECN Capital Corp.
With managed and advised assets of US$30 billion, ECN Capital Corp. (TSX: ECN) is a leading provider of business services to North American based banks, credit unions, life insurance companies, pension funds and investment funds (collectively our “Partners”). ECN Capital originates, manages and advises on credit assets on behalf of its Partners, specifically secured loan portfolios and credit card portfolios. Our Partners are seeking high quality assets to match with their deposits or other liabilities. These services are offered through two operating businesses: Triad Financial Services and The Kessler Group.
https://www.globenewswire.com/news-release/2021/12/06/2346856/0/en/ECN-Capital-Announces-Completion-of-the-Sale-of-its-Service-Finance-Business-and-Distribution-to-Shareholders.html