ECN Capital

ECN Capital Corporation
Company typePublic
TSX: ECN
S&P/TSX Composite Component
IndustryBusiness Services
Founded2016
Headquarters
Toronto, Ontario
,
Canada
Key people
Steven Hudson (Chief executive officer)
Websitehttp://ecncapitalcorp.com/

ECN Capital Corporation is a Canadian financing company with managed and advised assets of approximately US$29 billion. It provides credit portfolios to 90 U.S. financial institutions and also originates, manages and advises on prime credit assets. It is listed on the Toronto Stock Exchange.[1]

History

ECN was founded in October 2016, through a spin-off of Element Financial's equipment finance division.[2] The spin-off resulted in two separate publicly traded companies: Element Fleet Management, which manages vehicle fleets, and ECN Capital, which provided commercial financing, especially to fleet owners.[3]

In February 2017, ECN sold its US commercial and vendor finance business to PNC Capital for $1.25 billion.[1] The deal caused the company's share price to rise, in part because the sale price was above book value.[4] This deal was part of a larger attempted re-deployment of capital by ECN from vendor and equipment financing to home improvement and construction financing.[5] As part of this re-deployment, in June 2017, the firm purchased Service Finance, an American home improvement lender, for $410 million.[6] It also purchased Triad Financial, a Florida-based home improvement lender, for $100 million, in October 2017.[5] On the other hand, in August 2017, ECN sold some of its rail car financing business for $1.44 billion.[5] It also sold its Canadian vendor financing business for $900 million in October 2017.[5] In December 2021 ECN sold Service Financial for US$2 Billion and used the proceeds to declare a $7.50/share special dividend that was paid out to shareholders on Dec. 22, 2021.

Business

ECN Capital currently operates in two divisions:[7]

  • Triad Financial, a manufactured home lender
  • The Kessler Group, a payment services company

References

  1. ^ a b "ECN Capital to sell US$1.25B commercial and vendor finance business to PNC Financial - Article - BNN". BNN. 2017-02-21. Retrieved 2018-04-22.
  2. ^ "Element Financial shareholders back splitting company into two". The Globe and Mail. 2016-09-20. Retrieved 2018-04-22.
  3. ^ "Element Financial to split into two: fleet management and financing". Reuters. 2016-02-16. Archived from the original on February 19, 2016. Retrieved 2018-04-22.
  4. ^ "ECN Capital shareholders welcome news of deal to sell U.S. equipment finance business for US$1.25B". Financial Post. 2017-02-21. Retrieved 2018-04-22.
  5. ^ a b c d "ECN Capital moves into U.S. housing market with Triad acquisition". The Globe and Mail. Retrieved 2018-07-01.
  6. ^ "ECN Capital to buy Service Finance for C$410 million". Reuters. 2017-06-08. Retrieved 2018-07-01.
  7. ^ "ECN Capital: Locations". ECN Capital. Retrieved 2018-07-01.