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Element Financial Corporation (“Element” or the “Company”), one of North America’s leading equipment finance companies, has announced that it has entered into an agreement with Cargojet Inc., (“Cargojet”) to finance three Boeing 767-300ER freighter aircraft for approximately $100 million. The transaction will provide Canada’s leading supplier of air cargo services with additional capacity to support its growing client base.
“Cargojet has established a dominant market position in Canada servicing long-term contracts for high quality clients,” noted Tony Bergeron, president of Element Aviation Finance. “This transaction fits perfectly within Element’s aviation portfolio providing exceptional credit quality as well as additional diversification both by region and by customer type,” added Bergeron.
“Cargojet continues to be an industry leader in providing our customers with the highest levels of reliable and competitive air cargo services in the marketplace,” said Dr. Ajay K. Virmani, president and CEO of Cargojet Inc. “The new generation, long range, fuel efficient and environmentally friendly aircraft financed by Element through this transaction will enable us to expand the geographic reach and capacity of our network,” he added.
The transaction is expected to close on or before June 30, 2014 subject to customary conditions precedent. Capital Canada Limited acted as financial advisor to Cargojet with respect to the transaction.
