Element Announces Inaugural Equity Residual Transaction, Expanding Strategic Funding Capabilities

About this update from Element Fleet Management Corporation

TORONTO, June 26, 2026 (GLOBE NEWSWIRE) -- Element Fleet Management Corp. (TSX: EFN) ("Element" or the "Company"), the largest publicly traded pure play automotive fleet manager in the world and a global leader in intelligent fleet and mobility solutions, today announced the completion of a $670 million asset-backed security ("ABS") note offering and sale of corresponding equity residuals involving a portfolio of U.S. fleet lease receivables. This is Element's inaugural ABS note issuance for its Chesapeake IV program under a "discrete pool" collateral structure and the first time the Company has sold equity residuals in connection with an ABS offering. It is also the first transaction completed under a three-year commitment for the purchase of equity residuals with funds managed by Blackstone Credit & Insurance "Blackstone" and Canada Pension Plan Investment Board "CPP Investments", through subsidiaries of CPPIB Credit Investments Inc. This strategic relationship and funding structure provide Element with additional off-balance sheet funding, reducing leverage while also diversifying and optimizing the Company's funding profile. On a pro forma basis, the 76.4 per cent debt-to-capital ratio that Element reported as of Q1 2026 would decline to 74.9 per cent following the transaction, thereby providing the Company with additional balance sheet flexibility. By combining access to diverse sources of capital with its industry-leading fleet management expertise, Element remains well positioned to support client growth, drive long-term shareholder value and advance its strategy as a global leader in intelligent fleet and mobility solutions. "Element is pleased to enter into this relationship with strong partners such as Blackstone and CPP Investments," said Marc St-Onge, Senior Vice President and Treasurer at Element. "This transaction represents an important evolution in our funding strategy, providing another tool to support the Company's growth while enhancing our ability to serve clients. We appreciate the confidence that Blackstone and CPP Investments have shown in the strength of our lease portfolio and look forward to building on these relationships as we continue to diversify our sources of capital and execute on our long-term growth objectives." "Element has built a high-quality fleet leasing platform supported by strong origination capabilities, lon...

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