TORONTO, ONTARIO--(Marketwired - Oct. 23, 2014) - Element Financial Corporation (TSX:EFN) ("Element" or the "Company") announced today that it has expanded the Company's existing senior credit facility to $1.6 billion with the addition of a further $100 million commitment from a US-based bank. The Company's senior banking facility is led by Bank of Montreal and now includes 9 Canadian and US banks. This provides Element with 3-year term funding capacity at a cost of capital that is currently below rates that are available to BBB+ rated issuers. This funding platform provides the Company with the means to increase its leverage and to fund expected growth through 2015 and beyond in each of its four business verticals - fleet management, railcar finance, vendor & commercial finance and aviation finance. At the same time, as market spreads have widened for all issuers, the Company has elected not to proceed with an unsecured private placement program at this time and will continue to use its lower cost credit facility already in place.

"The expanded senior credit facility will add leverage to our balance sheet and improve the efficiency of our capital structure as we continue to grow our asset base through 2015 and beyond," said Steven K. Hudson, Chairman and CEO of Element Financial Corporation. "We will continue to monitor debt market conditions. When they stabilize and become more favourable for the Company, we plan to use our investment grade rating to further diversify our funding sources and reduce our cost of capital. In the meantime, we will continue to move towards lower overall cost of funding, including consolidating our fleet securitization program which is underway," added Mr. Hudson.

Element's total sources of liquidity amount to more than $10 billion provided to the Company through term funding agreements, various private and public securitization conduits and unsecured convertible debt with Canadian and US-based banks and life insurance companies. The Company currently has a BBB+ investment grade issuer and senior unsecured rating from Kroll Bond Rating Agency (KBRA).

About Element Financial Corporation

With total assets of $10 billion, Element Financial Corporation is one of North America's leading equipment finance companies. Element operates across North America in four verticals of the equipment finance market - Commercial & Vendor Finance, Aviation Finance, Railcar Finance and Fleet Management.

Forward Looking Statements

This release includes forward-looking statements regarding Element and its business. Such statements are based on the current expectations and views of future events of Element's management. In some cases the forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "plan", "anticipate", "intend", "potential", "estimate", "believe" or the negative of these terms, or other similar expressions intended to identify forward-looking statements. Forward-looking statements in this release include those related to Element's plans to access the rated debt market and lower its funding costs. The forward-looking events and circumstances discussed in this release may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting Element, including risks regarding the equipment finance industry, economic factors and many other factors beyond the control of Element. No forward-looking statement can be guaranteed. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement or information. Accordingly, readers should not place undue reliance on any forward-looking statements or information. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Element undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

Contact Information:

Element Financial Corporation
John Sadler
Senior Vice President
(416) 386-1067 ext. 2313

Element Financial Corporation
Michel Beland
Chief Financial Officer
(416) 386-1067 ext. 2225