Purchase of GE portfolio positions Element for deeper penetration of the
North American commercial helicopter market
TORONTO, Dec. 9, 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 signed a definitive
agreement with a subsidiary of GE Capital in the US to acquire a
portfolio of finance assets secured by individual helicopters operated
by a diversified base of customers across a variety of industries for a
purchase price of approximately US$ 245 million.
The portfolio purchase gives Element a very broad and diversified base
on which to build its position as a leading financial partner serving
the North America commercial helicopter market. The acquired portfolio
of assets consists of 59 individual helicopters operated by more than a
dozen customers in various commercial lift applications including oil
and gas resource development and medevac services. The portfolio has no
history of losses and has a credit profile that is in alignment with
Element's existing book of aviation financings.
The demand for commercial helicopters in North America is principally
driven by applications in the oil and gas industry and for emergency
response services (medevac, police and fire suppression).
The transaction is expected to close on or before December 31, 2013
subject to customary conditions precedent.
About Element Financial Corporation
With total assets of approximately $2.7 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.
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 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
