12/26/2023 0 Comments Service finance company llc![]() With managed and advised assets of US$33 billion, ECN Capital Corp. The call can be accessed as follows:Ī telephone replay of the conference call may also be accessed until Septemby dialing 1-80 and entering the passcode 7456#. The Company will host its analyst briefing to discuss Q2 results and the Transaction commencing at 6:00 PM (ET) on Tuesday, August 10, 2021. Canadian Imperial Bank of Commerce will act as administrative agent and syndication agent, and Bank of Montreal will act as collateral agent.ĮCN’s Board of Directors in consultation with its financial and legal advisors, has unanimously determined that the Transaction is in the best interests of the Company and fair to ECN.ĬIBC Capital Markets has provided a fairness opinion to the Board of Directors that, as of the date of the opinion and based upon and subject to the assumptions and limitations described in its opinion, the consideration to be received by ECN pursuant to the Transaction is fair, from a financial point of view.ĬIBC Capital Markets acted as financial advisor and Cravath, Swaine & Moore LLP and Blake, Cassels & Graydon LLP acted as legal counsel to the Company in connection with the Transaction. ![]() ECN Capital’s existing senior credit facility will be amended and restated so as to provide for an aggregate of US$700 million in revolving funding for a period of 4 years from the closing date of the Transaction. The Transaction is subject to standard licensing and regulatory approvals, the satisfaction of customary closing conditions and is expected to close late in the Fourth Quarter 2021.Īs a result of the Transaction Agreement that was entered into with Truist Bank, ECN Capital received fully underwritten agreements from its senior lenders for the amendment of its existing senior credit facility following the closing of the Transaction. “As with Service Finance, ECN has been able to work with both companies to meaningfully expand product menus and improve operational excellence, which will drive significant opportunities to continue to maximize shareholder value in the future.” “Going forward, ECN is well positioned to continue its success with two fantastic businesses in Triad and KG,” Mr. We believe this transaction maximizes value for ECN shareholders and puts SFC in the best position to succeed in its next phase of growth,” said Mr. Truist has been a long-time partner of SFC and is best positioned to build on the successes we’ve had over the last several years. “Service Finance has performed spectacularly since ECN’s investment in September 2017 and I want to thank Mark Berch and his entire team for their remarkable contributions. Today’s announcement to sell SFC for $2 billion marks another milestone on the road to that goal,” said Steven Hudson, CEO of ECN Capital Corp. “ECN’s primary strategic directive has been to manage and maximize investor capital in the specialty finance sector. (TSX: ECN) (“ECN Capital” or “the Company”), one of North America’s leading commercial finance companies, today announced that it has entered into a definitive agreement (the “Transaction Agreement”) with Truist Bank, the wholly owned bank subsidiary of Truist Financial Corporation (NYSE: TFC) (“Truist”) to sell all of the issued and outstanding equity interests in each of Service Finance Company, LLC and Service Finance Holdings, LLC (together “SFC”), each a wholly-owned, indirect subsidiary of the Company, for cash proceeds of US$2 billion (the ”Transaction”).įollowing the closing of the Transaction, ECN Capital intends to pay a special dividend of C$7.50 per common share or approximately US$1.5 billion from the net proceeds (after estimated taxes and transaction costs based on ECN’s current issued and outstanding common shares as of August 10, 2021), to its common shareholders. 10, 2021 (GLOBE NEWSWIRE) - ECN Capital Corp. Strong capital position will drive go-forward business ![]() Net after-tax proceeds of C$7.50 per share to be distributed to common shareholders
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