TORONTO, 06 Dec. 2021 (GLOBE NEWSWIRE) – ECN Capital Corp. (TSX: ECN) (“ECN Capital“or the”Society“) is pleased to announce that it has completed its previously announced sale to Truist Bank of all issued and outstanding interests in each of Service Finance Company, LLC and Service Finance Holdings, LLC, each of which is an indirect owned subsidiary of the Company, for cash proceeds of US $ 2 billion (the “Funding of services Sale“).
“The closing of the Service Finance transaction marks a key milestone for ECN, ”said Steven Hudson, CEO of ECN Capital Corp. “I would like to thank all the members of the Service Finance team for their remarkable achievements. We are delighted to have sold the business to a great partner – Truist is the best possible buyer to take Service Finance to the next level and continue its phenomenal momentum for years to come.
In connection with the closing of the Sale of Finance Service, the Board of Directors of the Company (the “Plank“) today declared a distribution to the holders of common shares of the Company (the”Ordinary actions“) the net proceeds received from the sale of service financing, amounting to a distribution of Cdn $ 7.50 per common share (the”Distribution“).
The distribution will consist of a return of capital in the aggregate amount of C $ 1,010,500,000, which represents C $ 4.14 per common share (the “Repayment of capital“), with the remainder in the form of a special dividend in the amount of C $ 3.36 per common share (the”Special dividend“).1 The special dividend is designated as an eligible dividend for the purposes of Article 89 (1) of the Income Tax Act (Canada).
In connection with the return of capital, the board confirmed a reduction in the stated capital of the common shares for an aggregate amount equal to C $ 1,010,500,000 (the “Declared capital reduction”), Whose declared capital reduction was previously approved by the holders of ordinary shares at an extraordinary meeting held on December 2, 2021.
The Distribution is scheduled to be paid on December 22, 2021 (the “Payment date“) To holders of ordinary shares of record at the close of business on December 15, 2021 (the”Registration Date“). Subject to confirmation from the Toronto Stock Exchange, ECN Capital expects the Common Shares to begin trading on a “notes payable” basis when trading begins on December 14, 2021 and that they will begin trading on a “note payable” basis. start to be traded “ex-distribution” on December 23, 2021. The repayment date for matured bills will be December 24, 2021.
About Deadline Trading
The payable bills represent rights to cash and will be attached to the ordinary shares between the first trading day preceding the record date and the payment date, allowing the ordinary shares to increase the value of the right to the distribution until that it is paid. If expired bills are used, the ex-distribution date is postponed to the first trading day following the Payment Date.
About ECN Capital Corp.
With assets under management and advice of US $ 30 billion, ECN Capital Corp. (TSX: ECN) is a leading provider of business services to North American-based banks, credit unions, life insurance companies, pension funds and investment funds (collectively our “Partners”). ECN Capital creates, manages and advises credit assets on behalf of its partners, in particular secured loan portfolios and credit card portfolios. Our partners look for high quality assets that match their deposits or other liabilities. These services are offered through two operating companies: Triad Financial Services and The Kessler Group.
This press release contains forward-looking statements regarding ECN Capital and its business. These statements are based on the current expectations and opinions about future events of the management of ECN Capital. In some cases, forward-looking statements may be identified by words or phrases such as “may”, “will”, “expect”, “plan”, “anticipate”, “intend”, ” possible “,” estimate “,” “believe” or the negative of these terms, or other similar expressions intended to identify forward-looking statements. Forward-looking statements contained in this press release include, but are not limited to, statements regarding the distribution, including the expected per share capital repayment and special dividend amounts, the expected timing of the distribution and the use of the dividends. invoices due. The forward-looking events and circumstances described in this press release may not occur and could differ materially due to known and unknown risk factors and uncertainties affecting ECN Capital, including risks relating to the financial industry, economic factors and many other factors beyond ECN’s control. Capital city. No forward-looking statement can be guaranteed. Forward-looking statements and information, by their nature, are based on assumptions and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, or the results of the business. industry, are materially different from the results, performances or achievements expressed or implied by such forward-looking statements or information. Therefore, readers should not place undue reliance on forward-looking statements or information. A discussion of the significant risks and assumptions associated with such forward-looking statements or information is available in ECN Capital’s MD&A for the three and nine month periods ended September 30, 2021 and the 2020 Annual Information Form dated March 31. 2021, each of which has been filed on SEDAR and can be viewed at www.sedar.com. Unless required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and ECN Capital assumes no obligation to publicly update or revise any forward-looking statements, whatsoever. either as a result of new information, future events, or otherwise.
The per share capital return and special dividend amounts disclosed in this press release are based on the number of common shares outstanding at the close of business on December 3, 2021, or 244,054,188 common shares. The actual amounts per share of the return of capital and the special dividend will be based on the number of common shares issued and outstanding at the close of business on the record date.
1 Amounts per share based on the assumption that a total of 244,054,188 common shares are issued and outstanding, this total amount being the number of common shares issued and outstanding at the close of business on December 3, 2021. The amounts Actual per share may change depending on the number of issued and outstanding common shares at the close of business on the record date. See “Forward-Looking Statements” below.