Business News • MarketWire • Element Expands Senior Credit Facility to $1.6 Billion |
Element Expands Senior Credit Facility to $1.6 Billion |
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Element Expands Senior Credit Facility to $1.6 Billion
TORONTO, ONTARIO--(Marketwired - Oct. 23, 2014) - Element Financial Corporation (TSX:EFN) ("Element" or the "Company") announced today that it has expanded the Company's existing senior credit facility to $1.6 billion with the addition of a further $100 million commitment from a US-based bank. The Company's senior banking facility is led by Bank of Montreal and now includes 9 Canadian and US banks. This provides Element with 3-year term funding capacity at a cost of capital that is currently below rates that are available to BBB+ rated issuers. This funding platform provides the Company with the means to increase its leverage and to fund expected growth through 2015 and beyond in each of its four business verticals - fleet management, railcar finance, vendor & commercial finance and aviation finance. At the same time, as market spreads have widened for all issuers, the Company has elected not to proceed with an unsecured private placement program at this time and will continue to use its lower cost credit facility already in place.
View More : http://www.marketwired.com/mw/release.do?id=1960734&sourceType=3
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