Bank of Montreal Provides $1.63B Financing to Element
Element Financial announced it obtained a $1.36 billion bridge financing commitment from Bank of Montreal to finance the acquisition of PHH Corporation’s fleet management services business.
Element also obtained lender commitments to amend and restate the company’s revolving credit agreement, effectively consolidating its existing commitments under the company’s current senior secured revolving credit facility and non-revolving bridge facility, and providing for an aggregate commitment of $1 billion (and including a further $500 million accordion feature).
The company plans to sell, on a “bought deal” basis, $750 million of subscription receipts, $250 million of extendible convertible unsecured subordinated debentures and $100 million cumulative 5-year rate reset preferred shares, Series E of Element.
The net proceeds from the offerings will be used by Element to fund a portion of the purchase price of the PHH acquisition.
To view the full Element release,click here.