Amounts in USD unless otherwise noted
- Company closes issuance of
$750 million of asset-backed term notes - Element is the first fleet management company to issue term ABS in the US since the widespread arrival of COVID-19
- Notes were up to 11 times oversubscribed with broad investor participation
- Proceeds will be used to repay outstanding variable funding notes, bolstering Element’s approximately
$5 billion CAD of committed, undrawn liquidity
Four classes of Notes were issued:
The Notes were up to 11 times oversubscribed, with broad investor participation: 32 unique investors received Class A allocations, which is a 129% increase from the number of investors in Element’s last Chesapeake term issuance. The level of demand evidences the Company’s ready access to cost-efficient capital from a diversity of sources.
The proceeds from the Notes will be used to pay down variable funding notes outstanding, creating capacity in Chesapeake and increasing Element’s approximately
“As the first term ABS issuance by an FMC since February, this transaction exhibits Element’s pre-eminent standing in the US fleet ABS market,” said
About
Forward-Looking Statements
This press 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, including, among others, statements regarding the use of proceeds from the offering of the Notes, Element’s ability to execute on its client-centric transformation plan and business strategy, including improvements to run-rate profitability, enhancements to clients’ service experience and service levels, enhancement of financial performance, improvements to client retention trends, reduction of operating expenses, increases in efficiency, plans to sell its interests in non-core assets, terms of the dividend reinvestment plan, transformation of its core business, creation of value for all stakeholders, expectations regarding syndication, growth prospects, level of workforce engagement, improvements to magnitude and quality of earnings, funding of the transformation, executive hiring and retention, process and infrastructure transformation, focus and discipline in investing, balance sheet management and plans to reduce leverage ratios, anticipated benefits of the balanced scorecard initiative and expectations regarding financial performance. 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. Such risks and uncertainties include those regarding the ongoing COVID-19 pandemic, risks regarding the fleet management and finance industries, economic factors, risks related to the payment of dividends, risks related to business integration and many other factors beyond the control of Element. A discussion of the material risks and assumptions associated with this outlook can be found in Element’s annual MD&A and Annual Information Form for the year ended
Contact:Michael Barrett Vice President, Investor Relations (416) 646-5698 mbarrett@elementcorp.com
Source:
2020 GlobeNewswire, Inc., source