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Element Financial Launches Railcar Strategic Alliance with Trinity Industries
Financing for US$2 billion worth of railcars to be provided over the next two years ...
About this update from Element Fleet Management Corporation
[{"type":"text","content":"\n\n\nFinancing for US$2 billion worth of railcars to be provided over the\n next two years \n\n\nTORONTO, Dec. 9, 2013 /CNW/ - Element Financial Corporation (TSX: EFN)\n (\"Element\" or \"the Company\"), one of North America's leading equipment\n finance companies, today announced that it has entered into a strategic\n alliance agreement (the \"Agreement\") with Dallas-based Trinity\n Industries, Inc. (NYSE:TRN) (\"Trinity\"), the leading railcar\n manufacturer and lessor in North America, to provide lease financing\n for up to US$2 billion worth of railcars over the next two years.\n\n\nUnder the terms of the Agreement, Element will be presented with\n preferred opportunities to enter into lease financings for a\n diversified fleet of railcars - including new railcars to be\n manufactured by Trinity, existing railcars from Trinity's lease fleet\n as well as secondary market purchases. The identification of railcar\n assets that meet Element's portfolio requirements will be based on\n various diversification criteria including limits on railcar type, use,\n lease duration, average age and credit quality of the lessee. Offers of\n qualifying railcar assets are to be made to Element on a quarterly\n basis for the duration of the Agreement and are subject to acceptance\n by Element. Trinity will also provide Element with advisory services\n and, in conjunction with Element, will act as servicer with\n responsibility for leasing sales, lease renewals, the provision of\n maintenance services and portfolio balancing in respect of the railcar\n lease portfolio.\n\n\n\"This agreement significantly advances Element's growth strategy by\n positioning us with North America's leading railcar manufacturer in a\n strategic alliance that is expected to substantially increase our\n current portfolio of finance assets over the next two years,\" noted\n Steven K. Hudson, Element's Chairman and CEO. \"Railcar financing\n complements our other core equipment financing verticals by offering\n attractive yields, access to reliable and proven funding structures,\n efficient originating and operating costs and low credit losses backed\n by long life assets that are in high demand,\" added Mr. Hudson.\n\n\n\"We are excited to form this strategic alliance with Element, which\n shares Trinity's long-term view regarding the attractive nature of\n investin...