TORONTO, ONTARIO--(Marketwired - May 12, 2014) - Element Financial Corporation (TSX:EFN) ("Element"), one of North America's leading equipment finance companies, announced today that it has entered into a US$200 million secured equipment financing agreement with Bridger, LLC ("Bridger"), an oil marketing and midstream logistics company based in Dallas, Texas. The facility, US$62 million of which is being advanced immediately, will be drawn down over the next 12 months for the acquisition by Bridger of a fleet of 1,300 new rail tank cars as well as a fleet of heavy-duty trucks and specialty trailers. The new rail tank cars are being manufactured to exceed the highest regulatory safety standards by Dallas-based Trinity Industries. The transaction was originated by Element's US-based Commercial Finance group (formerly CoActiv Capital Partners) with underwriting support from the Company's Toronto-based Railcar Finance group.
"This transaction, which is equal in size to CoActiv's entire annual origination volume at the time of its acquisition by Element in 2012, proves the broad depth of expertise and origination capacity of our US-based Commercial Finance group and provides Element with an opportunity to initiate a funding relationship with one of North America's leading end-to-end energy transportation logistics companies," said Bradley Nullmeyer, Element Financial Corporation's President. "It not only leverages Element's structured finance experience, but also our deep understanding of the underlying values in these assets resulting in the best possible solution for Bridger," added Mr. Nullmeyer.
"A transaction of this scale for an industry-leading signature customer like Bridger allows us to clearly demonstrate the transportation industry expertise that is resident in Element's US Commercial Finance unit," said Steve Grosso, President and COO of Element Financial (USA). "Developing and underwriting this facility for such a prestigious energy transportation company reinforces Element's credentials as a funder of choice to this rapidly growing North American industry," continued Mr. Grosso.
"The financing provided by Element optimizes Bridger's capital structure and allows us to further execute on our strategy of technological innovation by purchasing the safest and most current railcars available for transportation of crude oil throughout North America," noted Julio E. Rios, II, Bridger's President and Chief Executive Officer. "Element was the clear choice for us as they brought broad financial strength to this transaction as well as a deep knowledge of our business and railcar asset values," concluded Mr. Rios.
Bridger, LLC is a U.S.-based market leader in providing logistics and marketing services to the crude oil industry. Bridger engages in the purchase, sale, transportation, storage and terminalling of crude oil through its nationwide asset base that spans 13 states and includes all major domestic crude oil production regions and basins. The company currently provides flow assurance and crude oil markets to its customers for over 350,000 barrels of crude oil per day through its logistics assets and its marketing business.
About Element Financial Corporation
With total assets in excess of $4 billion, Element Financial Corporation is one of North America's leading equipment finance companies. Element operates across North America in four verticals of the equipment finance market - Commercial & Vendor Finance, Aviation Finance, Railcar Finance and Fleet Management.
Forward Looking Statements
This release includes forward-looking statements regarding Element and its business. Such statements are based on the current expectations and views of future events of Element's management. In some cases the forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "plan", "anticipate", "intend", "potential", "estimate", "believe" or the negative of these terms, or other similar expressions intended to identify forward-looking statements. The forward-looking events and circumstances discussed in this release may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting Element, including risks regarding the equipment finance industry, economic factors and many other factors beyond the control of Element. No forward-looking statement can be guaranteed. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement or information. A discussion of the material risks and assumptions associated with this outlook can be found in the Element's 2013 MD&A, and 2013 Annual Information Form, all of which have been filed on SEDAR and can be accessed at www.sedar.com. Accordingly, readers should not place undue reliance on any forward-looking statements or information. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Element undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.