Element Establishes Vendor Program with Trinity for Acquisitions

Element Financial Corporation established a $2-billion vendor finance program with Trinity Industries for the acquisition of leased railcars and the acquisition of a $243-million leased helicopter portfolio from GE Capital.

To support these transactions and to fund future growth, Element also completed bought deal financings for $460 million of common shares and $115 million of preferred shares under Element's new $1.25-billion shelf prospectus. Element also entered into a syndicated bridge credit facility with its lenders for $600 million.

With the completion of the transactions, Element had total assets of approximately $3.3 billion at the end of 2013, making Element one of North America's leading equipment finance companies.
On the Trinity vendor finance program, Element was led by Jim Nikopoulos, Vice President and General Counsel, with support from Gus Francis and Karl Williams of Chapman and Cutler LLP.

Element also received assistance from Blake, Cassels & Graydon LLP on the bridge credit financing to support the initial tranches of $501 million of 4,878 railcars under the Trinity vendor program with a team including David Toswell, Peter MacGowan, Michael Burke and Stephen Ashbourne; and from Mac Dorris of Dechert LLP. Element's lending syndicate was represented by Dentons Canada LLP with a team including Dennis Wiebe and Kori Williams; and by David Ciancuillo of Mayer Brown.

Jim Nikopoulos of Element also led the $243 million acquisition of 57 individual helicopters from GE Capital with support from Carel Issid of Element; from Edward Gross of Vedder Price LLP; and on the financing side from Donald Gray and Peter MacGowan of Blakes.

On the bought deal common and preferred share financings, Blakes provided Element with support through a team including David Toswell, Mark Adkins, Michael Hickey, Jamie Kariya, Jacob Gofman and David Colman.

The underwriting syndicate was represented by Rob Wortzman, Jeff Hergott, Mack Hosseinian and Amanda Berloni of Wildeboer Dellelce LLP.