Proceeds fund acquisition; deal was conducted on a bought-deal basis
By Devika Patel
Knoxville, Tenn., June 18 - Element Financial Corp. said it settled a C$300.57 million private placement of special warrants, which are convertible into common stock. The deal priced for C$200.01 million with a C$30 million greenshoe on May 31.
The company sold 29,612,500 special warrants at C$10.15 apiece, a 5.76% discount to the May 30 closing share price of C$10.77.
The sale was conducted on a bought-deal basis by a syndicate of underwriters co-led by GMP Securities LP, BMO Capital Markets and Barclays and including Scotiabank, National Bank Financial Inc., RBC Capital Markets, TD Securities Inc., Cormark Securities Inc. and Manulife Securities Inc.
Proceeds will be used to fund the company's planned acquisition of GE Capital Canada's Canadian fleet portfolio and the operational resources required to service this portfolio and Element's future growth as well as for general corporate purposes.
Element is a Toronto-based financial services provider that focuses on the equipment finance market.
| Issuer: | Element Financial Corp.
|
| Issue: | Special warrants convertible into common shares
|
| Amount: | C$300,566,875
|
| Special warrants: | 29,612,500
|
| Price: | C$10.15
|
| Warrants: | No
|
| Underwriters: | GMP Securities LP, BMO Capital Markets and Barclays (co-leads), Scotiabank, National Bank Financial Inc., RBC Capital Markets, TD Securities Inc., Cormark Securities Inc. and Manulife Securities Inc.
|
| Pricing date: | May 31
|
| Settlement date: | June 18
|
| Stock symbol: | Toronto: EFN
|
| Stock price: | C$10.77 at close May 30
|
| Market capitalization: | C$1.37 billion
|
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