ECN Capital Corp. announced that on May 11, at the ECN Capital Board of Directors meeting, Jim Nikopoulos was promoted to President of ECN Capital. Jim had previously served as Chief Operating Officer.
“Jim has been instrumental in helping me execute our strategy since the separation from Element Fleet. He led the very successful sale of our U.S. C&V Business to PNC,” said Steven Hudson, ECN Capital’s CEO. “I am proud that the Board agreed to promote Jim and I am excited to move forward as partners in successfully redeploying ECN’s capital. Jim’s ability to return capital, manage businesses and reinvest capital is second to none” added Mr. Hudson.
Bill Lovatt, ECN Capital’s Chairman, also added, “Jim has proven his ability to lead on an operating basis and to assist Steve in the strategic redeployment of capital. His community commitment is equally impressive.”
In a separate press release, ECN Capital Corp.announced the sale of its aviation advisory business and plans to raise $100 million through a preferred share offering.
Sale of Commercial Aviation Advisory Business
On May 12, 2017, the ECN Capital entered into an agreement with Stellwagon Group, the commercial aviation finance advisory and asset management business of Acasta Enterprises Inc. (“Acasta”) to sell the Company’s Commercial Aviation Advisory Business for a purchase price of US$22.5 million payable by the issuance of common shares in the capital of Acasta. As part of the transaction, certain key employees of the ECN Commercial Aviation Advisory and the office in Stamford, CT will transition to Acasta.
ECN Capital to Raise $100MM through Preferred Share Offering
ECN Capital Corp. announced that it has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets, CIBC Capital Markets, National Bank Financial Inc., RBC Capital Markets and TD Securities Inc. The underwriters have agreed to buy 4,000,000 Cumulative 5-Year Minimum Rate Reset Preferred Shares, Series C (the “Series C Preferred Shares”) at a price of $25.00 per share for aggregate gross proceeds of $100,000,000. The net proceeds are expected to be used to originate and finance, directly and indirectly, finance assets, to fund future acquisitions and for general corporate purposes.
ECN Capital has granted the underwriters an option to purchase at the offering price up to an additional 1,000,000 Series C Preferred Shares exercisable, in whole or in part, at any time up to 48 hours prior to closing of the offering. Should the option be fully exercised, the total gross proceeds of the Series C Preferred Share offering will be $125,000,000.
The Series C Preferred Shares will be issued to the public at a price of $25.00 per share and holders will be entitled to receive fixed cumulative preferential cash dividends, payable by quarterly installments for an initial period of five years, as and when declared by the Board of Directors of the Corporation, at a rate of $1.5625 per share per annum, to yield 6.25% annually. Thereafter, the dividend rate will reset every five years to the sum of the then current 5-Year Government of Canada Bond yield and 5.19%, provided that, in any event, such sum shall not be less than 6.25%. On June 30, 2022, and on June 30 of every fifth year thereafter, the Corporation may redeem the Series C Preferred Shares in whole or in part at par.
Holders will have the right to elect to convert all or any of their Series C Preferred Shares into an equal number of Cumulative Floating Rate Preferred Shares, Series D (the “Series D Preferred Shares”) on June 30, 2022, and on June 30 of every fifth year thereafter. Holders of the Series D Preferred Shares will be entitled to receive quarterly floating rate cumulative preferential cash dividends, as and when declared by the Board of Directors of the Corporation, equal to the sum of the then current 3-month Government of Canada Treasury Bill yield and 5.19%. On June 30, 2027 and on June 30, of every fifth year thereafter (a “Series D Redemption Date”), the Corporation may redeem the Series D Preferred Shares in whole or in part at par. On any other date that is not a Series D Redemption Date after June 30, 2022, the Corporation may redeem the Series D Preferred Shares in whole or in part by the payment of $25.50 for each share to be redeemed.
The offering is being made only in the provinces of Canada by means of a prospectus supplement to the Corporation’s base shelf prospectus. The closing date of the offering is expected to be on or about May 25, 2017.