Element Financial Corporation said it closed a new $585 million senior revolving credit facility to fund the company’s planned origination activity into 2014. The facility, which includes a $150 million accordion and has an initial term of three years, allows Element to borrow in Canadian or U.S. dollars and is incremental to the company’s other funding arrangements. Participating lending institutions include Bank of Montreal, Barclays, CIBC, Credit Suisse, National Bank, PNC Bank, RBC, Sun Trust and TD Bank, with Bank of Montreal acting as administrative agent.
“The addition of this senior credit facility further expands and diversifies our capital structure while providing additional funding capacity across our numerous verticals and across North America,” said Steven K. Hudson, Element’s chairman and CEO. “I believe we are now in a position to begin leveraging our balance sheet with transformational acquisitions that add both sector scope and origination scale to Element’s position as a leading provider of equipment financing in North America.”
Element operates across North America in three verticals of the equipment finance market: Element Capital provides large ticket equipment financing, Element Finance serves the mid-ticket equipment finance market, and Element Fleet provides vehicle fleet leasing and management solutions.