Element Issues $750 Million Fleet Lease ABS Notes, Further Bolstering Liquidity

Amounts in USD unless otherwise noted

• Company closes issuance of $750 million of asset-backed term notes
  
  
• Element is the first fleet management company to issue term ABS in the US since the widespread arrival of COVID-19
  
  
• Notes were up to 11 times oversubscribed with broad investor participation
  
  
• Proceeds will be used to repay outstanding variable funding notes, bolstering Element’s approximately $5 billion CAD of committed, undrawn liquidity

TORONTO, July 22, 2020 (GLOBE NEWSWIRE) -- Element Fleet Management Corp. (TSX: EFN) (“Element” or the “Company”), the largest pure commercial vehicle fleet manager in the world today announced the closing of $750 million in aggregate principal amount of commercial vehicle fleet lease asset-backed term notes (the “Notes”).

Four classes of Notes were issued: $594 million of fixed and $100 million of floating rate Class A; $21 million of fixed rate Class B; and $17.5 million each of fixed rate Classes C and D.

The Notes were up to 11 times oversubscribed, with broad investor participation: 32 unique investors received Class A allocations, which is a 129% increase from the number of investors in Element’s last Chesapeake term issuance. The level of demand evidences the Company’s ready access to cost-efficient capital from a diversity of sources.

The proceeds from the Notes will be used to pay down variable funding notes outstanding, creating capacity in Chesapeake and increasing Element’s approximately $5 billion CAD of contractually committed, undrawn liquidity.

“As the first term ABS issuance by an FMC since February, this transaction exhibits Element’s pre-eminent standing in the US fleet ABS market,” said Jay Forbes, President and Chief Executive Officer of Element. “The level of interest and participation from investors speaks to the strength of our portfolio’s credit profile and the essential nature of our assets in clients’ hands. With the use of proceeds from these notes, Element continues to enjoy well over $5 billion of undrawn financial capacity to support new and existing clients’ needs and our business objectives through the balance of 2020 and beyond.”