Brokered deal has C$30 million greenshoe; proceeds fund acquisition
By Devika Patel
Knoxville, Tenn., May 31 - Element Financial Corp. said it will conduct a C$200.01 million private placement of special warrants, which will be convertible into common stock. The deal has a C$30 million greenshoe.
The company will sell 19,705,000 special warrants at C$10.15 apiece, a 5.76% discount to the May 30 closing share price of C$10.77.
The sale will be conducted on a bought-deal basis by a syndicate of underwriters co-led by GMP Securities LP, BMO Capital Markets and Barclays and including Scotiabank, National Bank Financial Inc., RBC Capital Markets, TD Securities Inc., Cormark Securities Inc. and Manulife Securities Inc.
Settlement is expected June 18.
Proceeds will be used to fund the company's planned acquisition of GE Capital Canada's Canadian fleet portfolio and the operational resources required to service this portfolio and Element's future growth as well as for general corporate purposes.
Element is a Toronto-based financial services provider that focuses on the equipment finance market.
| Issuer: | Element Financial Corp.
|
| Issue: | Special warrants convertible into common shares
|
| Amount: | C$200,005,750
|
| Greenshoe: | C$30,000,863
|
| Special warrants: | 19,705,000
|
| Price: | C$10.15
|
| Warrants: | No
|
| Underwriters: | GMP Securities LP, BMO Capital Markets and Barclays (co-leads), Scotiabank, National Bank Financial Inc., RBC Capital Markets, TD Securities Inc., Cormark Securities Inc. and Manulife Securities Inc.
|
| Pricing date: | May 31
|
| Settlement date: | June 18
|
| Stock symbol: | Toronto: EFN
|
| Stock price: | C$10.77 at close May 30
|
| Market capitalization: | C$1.39 billion
|
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