Element Updates Investors on Business and Transformation

 Amounts in $CAD unless otherwise noted  

• Element’s strategy and strong financial position enable Company to withstand business impacts of COVID-19 crisis and emerge with momentum, President & CEO Jay Forbes says in letter to shareholders
   
• Company continues to target $180 million of actioned profit improvements and sub-6x tangible leverage by end of 2020
   
• Element establishes additional $560 million credit facility underwritten by four leading banks to provide interim funding for redemption of maturing convertible debentures if U.S. bond market conditions are not conducive to planned senior unsecured note issue.
   
• CEO Jay Forbes to hold discussion with Geoffrey Kwan of RBC Capital Markets on Wednesday, April 8, 2020 at 5:00 p.m. Eastern Time with live webcast and replay to be available at elementfleet.com/businessupdateapril2020

TORONTO, April 07, 2020 (GLOBE NEWSWIRE) -- Element Fleet Management Corp. (TSX: EFN) (“Element” or the “Company”), a leading global provider of fleet management services, today announced an update on its business and the impact of the COVID-19 pandemic and released a letter to shareholders from President and Chief Executive Officer Jay Forbes.

“Element has a very resilient business model, and the ongoing execution of our strategic plan to transform our core business and strengthen and deleverage our investment-grade balance sheet positions us well to not only withstand the stresses of this tumultuous time but to emerge with momentum,” Mr. Forbes said. “Our workforce is safe and working hard to deliver our consistent, superior client experience throughout this unprecedented period. We remain optimistic about the road ahead for Element.”

Element’s workforce is now largely working remotely, and delivering high levels of service to its clients in all five countries.

The Company remains committed to achieving its targets of $180 million in run-rate profit improvements actioned and tangible leverage below 6.0x by year-end.

Element’s lease book is fully funded to maturity, and the Company has ready access to more than $5 billion of contractually committed forward funding from leading financial institutions to both fund new originations and operate its business.

Element still intends to issue senior unsecured term debt in the U.S. bond market, the proceeds of which will be used – along with cash on hand – to retire the Company’s outstanding Convertible Subordinated Debentures maturing in June 2020. However, recognizing that bond market conditions may not be attractive in the short term, Element has established a $560 million committed credit facility underwritten by Bank of Montreal, Canadian Imperial Bank of Commerce, Royal Bank of Canada and BNP Paribas that can be used as required to fund redemption of the debentures on an interim basis.