ECN Capital completes $100M financing, announces $410M acquisition of Service Finance Co.

ECN Capital Corp. (TSX: ECN) completed its second public financing deal in May 2017, and then subsequently announced the acquisition of Service Finance Co. of Florida.

ECN Capital is the entity that was spun out of Element Financial in late 2016 through a butterfly reorganization. The company is led by CEO Steve Hudson.

The $100 million preferred share financing was executed under ECN’s $2 billion shelf prospectus. The offering was led by BMO Capital Markets.

The financing was completed under the direction of Loreto Grimaldi, ECN’s General Counsel, with assistance from Blake, Cassels & Graydon LLP, with a team comprising David Toswell, Shlomi Feiner, Mike Hickey, Jacob Gofman, Madison Kragten, Jon Viner and Taylor Dickinson.

Osler, Hoskin & Harcourt LLP represented the underwriters with a team consisting of Desmond Lee, Rosalind Hunter, Tim Hughes, Trevor Kirsh and Megan Lem.

On June 8, 2017, ECN Capital announced it had entered into an agreement to acquire Service Finance Co. (SFC) for $410 million. SFC originates and services prime and super-prime installment contracts to finance home improvement projects in the US.

Under the terms of the agreement, ECN Capital will acquire all the employees, systems, IP and offices of SFC, which is headquartered in Boca Raton, Florida.

The acquisition was led by ECN General Counsel Loreto Grimaldi, with external counsel assistance provided by Baker Hostetler LLC (a team led by Steve Goldberg) and Blake, Cassels & Graydon LLP (David Toswell and Mike Hickey).
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