December 18, 2014
Element to originate $6.5B in 2015, 75 per cent from U.S.
Toronto, ON--Element Financial announced that it expects to organically originate approximately $6.5 billion of new equipment loans and leases during 2015 across the its four North American market verticals representing an increase of 35 per cent over the $4.8 billion Element estimates it will originate in 2014. Approximately 75 per cent of this new business volume is expected to originate in the U.S.
In the Fleet Management vertical, Element expects to originate approximately $2.6 billion in new loans and leases in 2015 versus the $1.3 billion estimated for 2014. Element’s Rail Finance vertical is expected to originate $1.3 billion of new railcar leasing business in 2015 versus the $1 billion of railcar leasing business estimated in 2014.
In the Aviation Finance vertical, the company expects to originate $1 billion in new business volume versus the $1 billion estimated for 2014. In its Commercial and Vendor Finance vertical, Element expects to grow its new business volume to $1.6 billion in 2015 versus the $1.5 billion estimated for 2014. Other fee-based revenue in the range of $20 million is expected to be originated from the company’s new Structured Finance team in 2015 in the rail and aviation sectors.
The company also confirmed that its outlook for earnings per share for 2015 is generally in line with the current analyst consensus of $0.99 for the year with cash earnings per share expected to be approximately $1.33 for the year.
Although not required to fund the expected origination growth, Element also announced it added more liquidity by amending the terms of its $1.6 billion senior credit facility to include a $900 million accordion feature and expects $400 million of new lender commitments to close by the end of 2014. By the end of 2015, the company expects to have assets in excess of $14 billion.