Newspaper article The Canadian Press

Element Inks Railcar Deal, Acquires Portfolio; Plans to Raise $1 Billion

Newspaper article The Canadian Press

Element Inks Railcar Deal, Acquires Portfolio; Plans to Raise $1 Billion

Article excerpt

Element inks railcar deal, acquires portfolio

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TORONTO, Cananda - Element Financial Corp. (TSX:EFN) said Monday it has signed a deal to provide lease financing for up to $2 billion worth of rail cars over the next two years and acquire a US$245-million of portfolio of financial assets secured by helicopters

The equipment financing company also announced plans to raise $1 billion in new capital through a combination of common shares, preferred shares and a $600-million term loan.

Element said the railcar financing deal with Trinity Industries and helicopter portfolio acquisition from a subsidiary of GE Capital are expected to add to earnings in the second half of next year.

"With these two transactions, Element has firmly anchored itself as a North American leader in two of our five core equipment finance verticals -- aviation finance and railcar finance," Element chairman and chief executive Steven Hudson said.

"Working alongside the leading manufacturers that we support in these verticals, we expect to originate growing volumes of diversified high quality finance assets over the next several quarters as a result of these initiatives. …

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