TORONTO, July 3, 2013 /CNW/ - Element Financial Corporation (TSX: EFN)
("Element" or the "Company"), one of North America's leading
independent equipment finance companies, today announced that it has
commenced funding through the previously announced securitization
platform, Element Equipment Finance Fund (the "Fund"), with the
purchase on June 28, 2013 of US$48.5 million in unrated notes (the
"Notes") by a US-based investment management firm.
The Notes are backed by a first priority security interest in loans and
leases relating to fixed wing and rotary aviation equipment deployed by
North American-based operators. The Company anticipates selling
subsequent tranches of notes in the Fund to institutional investors
with increasingly diversified risk/return objectives as credit agencies
assign ratings to future notes issued by the Fund.
"This funding platform provides Element with an additional source of
capital that is customized for the higher dollar value financing
transactions originated by our large-ticket business unit - Element
Capital," noted Steven K. Hudson, Element's Chairman and CEO. "The Fund
not only offers improved economic returns for Element from these
transactions, but also provides us with competitive advantages over the
more time consuming syndication structures that were typically used to
fund the acquisition of these types of assets."
Guggenheim Securities, LLC acted as Element's financial advisor and
agent in the transaction.
About Element Financial Corporation
With total assets of approximately C$2.4 billion, Element Financial
Corporation is one of North America's leading independent equipment
finance companies. Element operates across North America in three
verticals of the equipment finance market - Element Capital provides
large ticket equipment leasing, Element Finance serves the mid-ticket
equipment finance market and Element Fleet provides vehicle fleet
leasing and management solutions.
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, including reference to the issuance of subsequent
tranches of notes, the availability of third party ratings on the notes
and/or the sale of notes to additional institutional investors may not
occur and could differ materially as a result of known and unknown risk
factors and uncertainties affecting the company. 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
