Element Fleet Management Issues $1B of ABS Term Notes

Element Fleet Management completed the issuance of $1 billion of rated term notes through Chesapeake Funding II LLC.

The offering was the third Chesapeake II issuance of 2017 bringing total issuance to $3.2 billion, the most in a year from any fleet asset-backed security (ABS) issuer. Strong demand for the notes allowed the company to double the offering from the initial launch size, with continued pricing improvement achieving the tightest spreads in the fleet ABS market this year.

“The outstanding pricing and execution on this transaction speak to the strength of our business, the quality of our asset base and fleet customers, and the robust nature of our funding platform,” said Karen Martin, executive vice president and treasurer. “We appreciate the continued support of our repeat ABS investors as well as the first-time participants in the platform.”

“We continue to see the benefits of the augmentation of our funding platform that was completed earlier this year and the transition to programmatic issuance, in the form of expanded investor interest and the continued improvement of pricing spreads. This platform provides Element with significant access to capital and funding flexibility,” said Bradley Nullmeyer, CEO.

J.P. Morgan, BMO Capital Markets, RBC Capital Markets and TD Securities acted as joint bookrunners for the term note transaction together with CIBC World Markets and National Bank of Canada Financial Markets as co-managers.

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