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ECN Capital to Sell U.S. Commercial, Vendor Finance Business to PNC

February 22, 2017, 07:40 AM
Filed Under: Mergers & Acquisitions

ECN Capital Corp. announced that it has entered into an agreement with PNC Financial Services Group (PNC) to sell the Company’s US Commercial and Vendor (C&V) Finance business for cash proceeds of approximately US$ 1.253 billion. PNC will purchase ECN Capital’s US C&V Finance business which includes approximately US$1.075 billion of total assets.

As part of the transaction, PNC has agreed to offer employment to all of ECN Capital’s US C&V Finance employees and to retain the lease on the existing office in  Horsham, Pennsylvania. The transaction is subject to customary approvals and is expected to close by early April 2017.

“Over the last five years, ECN Capital has built market-leading platforms in Canada and the United States in both rail finance and in commercial and vendor finance,” said Steven Hudson, ECN Capital’s Chief Executive Officer. “The process of selling our US C&V Finance operations, which was led by ECN Capital’s Chief Operating Officer Jim Nikopoulos, began last year and has culminated in a transaction that will enable this business to continue producing quality growth and strong returns under the ownership of one of the leading banks in the U.S.,” added Mr. Hudson.

“This all-cash transaction, which has the support of ECN Capital’s lending syndicate, requires minimal third-party approvals and is expected to strengthen our balance sheet, reduce leverage, substantially increase our tangible book value, and maintain our investment grade ratings,” said Jim Nikopoulos, ECN Capital’s Chief Operating Officer.

“As stewards of capital, we have acted in the best interests of our stakeholders with respect to this transaction,” commented Mr. Hudson.

Macquarie Capital acted as lead financial advisor on the transaction for ECN Capital, together with assistance from Morgan Stanley and BMO Capital Markets. Dechert LLP provided the Company with legal advice in connection with the transaction.

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