Element Issues $400 Million Inaugural U.S. Bond, Maturing Capital Structure and Diversifying Funding

Dollar amounts in USD unless otherwise noted

• Company closes inaugural issuance of $400 million of 5-year 3.85% senior unsecured investment-grade notes in keeping with strategic plan to strengthen its balance sheet
• Notes further the maturation of Element’s capital structure and introduce the Company to the U.S. debt capital markets where it intends to be a programmatic issuer – meaningfully diversifying its sources of funding
• Issuance represents endorsement of Element’s stable, resilient fleet management business and the credit strength of its broad blue-chip client base
• Proceeds will be used to retire CAD $567 million of 4.25% convertible debentures maturing June 30, 2020

TORONTO, June 03, 2020 (GLOBE NEWSWIRE) -- Element Fleet Management Corp. (TSX: EFN) (“Element” or the “Company”), a leading global provider of fleet management services, today announced the closing of its inaugural issue of $400 million of U.S. senior unsecured investment-grade notes, the proceeds of which will be used together with cash on hand to retire the Company’s CAD $567 million of 4.25% convertible debentures maturing June 30, 2020.

The notes are Element’s first offering in the U.S. senior unsecured debt market and part of the Company’s strategic plan to continue to strengthen its investment-grade balance sheet – including by maturing the capital structure and further diversifying Element’s access to cost-efficient funding. The sale priced at an all-in yield of 3.853%.

“This offering in the U.S. debt capital markets is another significant milestone for Element as we continue to execute our strategic plan: transforming our business to deliver a more consistent, superior client experience; and strengthening and maturing our investment-grade balance sheet. Together, we are cementing Element as the dominant fleet management leader in all our markets and creating value for all our stakeholders,” said Jay Forbes, President and Chief Executive Officer of Element.

“The strong interest in our offering is a testament to Element’s resilient business model; the credit strength of our broad, blue-chip client base; our stable profitability and free cash flow profile, even in times of economic stress; and our compelling growth prospects,” Mr. Forbes added. “We appreciate the endorsement of our strategic plan and business fundamentals by the U.S. debt capital markets – one of the deepest, most reliable sources of funding in the world – and we look forward to being a regular issuer in this market over the coming years.”