Element To Raise $2.2 Billion Of New Capital To Fund Future Acquisitions

Element Financial Corporation, one of North America’s leading fleet management and equipment finance companies, announced on May 21 that it plans to sell, on a "bought deal" basis, $1,550 million of subscription receipts, $500 million aggregate principal amount of extendible convertible unsecured subordinated debentures, and $150 million cumulative 5-year rate reset preferred shares, Series G of Element. The company intends to use the net proceeds from the offerings to fund future acquisitions.

"As we discussed on our recent first quarter conference call, the process of consolidation continues to accelerate in Element’s Fleet Management and Railcar verticals. The proceeds from this offering, together with the available leverage capacity in our capital structure, will enable us to act on acquisition opportunities that meet our criteria for accretion and value creation for our shareholders," said Steven Hudson, Element’s Chief Executive Officer.

In a report published on May 26, it was revealed that Element was in discussions to purchase GE Capital Fleet, which announced was divesting from parent corporation GE on April 10. You can read an excerpt of the discussion GE Capital Fleet President and CEO Kristi Webb had with NAFA President Ruth Alfson, CAFM^® by clicking here.