Toronto (pcJ News Briefs) – Element Fleet Management Corp. (TSX: EFN), formerly Element Financial Corporation, has closed the previously announced offering of 6,000,000 5.75% Cumulative 5-Year Minimum Rate Reset Preferred Shares, Series I, including 2,000,000 shares issued pursuant to the underwriters’ option, which was exercised in full on April 28, 2017, at a price of $25.00 per share for aggregate gross proceeds of $150,000,000.
The offering was conducted by a syndicate of underwriters led by BMO Capital Markets, CIBC Capital Markets, National Bank Financial, RBC Capital Markets, TD Securities, Cormark Securities, Desjardins Securities, GMP Securities, HSBC Securities (Canada) and Raymond James.
Net proceeds will be used to fund the growth of Element’s business and for general corporate purposes.
The Series I Preferred Share holders will be entitled to receive fixed cumulative preferential cash dividends, payable by quarterly installments for an initial period of five years, as and when declared, at a rate of $1.4375 per share per annum, to yield 5.75% annually. Thereafter, the dividend rate will reset every five years to the sum of the then current 5-Year Government of Canada Bond yield and 4.64%, provided that, in any event, such sum shall not be less than 5.75%. On June 30, 2022, and on June 30 of every fifth year thereafter, Element Fleet Management may redeem the Series I Preferred Shares in whole or in part at par.
Holders will have the right to elect to convert all or any of their Series I Preferred Shares into an equal number of Cumulative Floating Rate Preferred Shares, Series J on June 30, 2022, and on June 30 of every fifth year thereafter.
Element Fleet Management is a global fleet management company, providing world-class management services and financing for commercial vehicle and equipment fleets.
photo credit: Element Fleet Management