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Element Financial Corporation, one of North America’s leading equipment finance companies, announced that it has signed a definitive agreement with a subsidiary of GE Capital in the US to acquire a portfolio of finance assets secured by individual helicopters operated by a diversified base of customers across a variety of industries for a purchase price of approximately US$ 245 million.
The portfolio purchase gives Element a very broad and diversified base on which to build its position as a leading financial partner serving the North America commercial helicopter market. The acquired portfolio of assets consists of 59 individual helicopters operated by more than a dozen customers in various commercial lift applications including oil and gas resource development and medevac services. The portfolio has no history of losses and has a credit profile that is in alignment with Element’s existing book of aviation financings.
The demand for commercial helicopters in North America is principally driven by applications in the oil and gas industry and for emergency response services (medevac, police and fire suppression).
The transaction is expected to close on or before Dec. 31, 2013 subject to customary conditions precedent.
