Element Raising $1.1B In PHH Fleet Acquisition
The Canadian equipment financier acquiring PHH Arval is raising $1.1 billion to close a deal it says will fuel ambitious expansion plans in the North American fleet management market.
As part of the deal, Element Financial Corp. is using deal financing of $750 million in subscription receipts, $250 million in extendible convertible debentures, and $100 million in cumulative five-year rate reset preferred shares.
Element Financial has amended and restated its revolving credit facility, giving the Toronto-based company access to $1 billion in loans. Element has secured a bridge loan of $1.36 billion from the Bank of Montreal to complete the deal by July 31.
Read Element's full release here.
PHH Sells Fleet Management Unit for $1.4B