Element Announces Inaugural Equity Residual Transaction, Expanding Strategic Funding Capabilities

TORONTO, June 26, 2026 (GLOBE NEWSWIRE) -- Element Fleet Management Corp. (TSX: EFN) (“Element” or the “Company”), the largest publicly traded pure play automotive fleet manager in the world and a global leader in intelligent fleet and mobility solutions, today announced the completion of a $670 million asset-backed security (“ABS”) note offering and sale of corresponding equity residuals involving a portfolio of U.S. fleet lease receivables.

This is Element’s inaugural ABS note issuance for its Chesapeake IV program under a “discrete pool” collateral structure and the first time the Company has sold equity residuals in connection with an ABS offering. It is also the first transaction completed under a three-year commitment for the purchase of equity residuals with funds managed by Blackstone Credit & Insurance “Blackstone” and Canada Pension Plan Investment Board “CPP Investments”, through subsidiaries of CPPIB Credit Investments Inc.

This strategic relationship and funding structure provide Element with additional off-balance sheet funding, reducing leverage while also diversifying and optimizing the Company’s funding profile. On a pro forma basis, the 76.4 per cent debt-to-capital ratio that Element reported as of Q1 2026 would decline to 74.9 per cent following the transaction, thereby providing the Company with additional balance sheet flexibility. By combining access to diverse sources of capital with its industry-leading fleet management expertise, Element remains well positioned to support client growth, drive long-term shareholder value and advance its strategy as a global leader in intelligent fleet and mobility solutions.

“Element is pleased to enter into this relationship with strong partners such as Blackstone and CPP Investments,” said Marc St-Onge, Senior Vice President and Treasurer at Element. “This transaction represents an important evolution in our funding strategy, providing another tool to support the Company’s growth while enhancing our ability to serve clients. We appreciate the confidence that Blackstone and CPP Investments have shown in the strength of our lease portfolio and look forward to building on these relationships as we continue to diversify our sources of capital and execute on our long-term growth objectives.”

“Element has built a high-quality fleet leasing platform supported by strong origination capabilities, long-standing client relationships and attractive underlying assets,” said Aneek Mamik, Head of Financial Services for Asset Based Finance at Blackstone Credit & Insurance. “We are pleased to support Element’s growth with this expanded relationship and augment our investments financing the real economy with hard asset-backed collateral.”

“This investment aligns with our strategy of partnering with leading businesses and deploying long-term capital into high-quality asset-backed opportunities,” said Paras Viras, Managing Director, Americas Structured Credit at CPP Investments. “We are pleased to support Element's continued growth through this strategic relationship as we aim to generate attractive risk-adjusted returns for the CPP Fund in the interests of CPP contributors and beneficiaries.”

About Element Fleet Management
Element Fleet Management (TSX: EFN) is the largest publicly traded pure play automotive fleet manager in the world and a global leader in intelligent fleet and mobility solutions. Guided by our Purpose to Move the world through intelligent mobility, we help clients manage the vehicles, data, technology, and decisions that keep their businesses moving. Fleet is our foundation, and intelligent mobility is how we lead. By combining deep fleet expertise with connected technologies, data driven intelligence, and strategic partnerships, Element helps clients lower total cost of ownership, improve uptime and driver experience, and build more resilient operations. Element manages over 1.5 million vehicles globally and leverages this scale and data to help clients optimize performance, identifying over $1.6 billion in cost savings opportunities across our clients’ fleets in the past year. Through Element Mobility, we are advancing our leadership into the next era of intelligent mobility to deliver measurable business outcomes for our clients. For more information, visit: https://www.elementfleet.com.

About Blackstone Credit & Insurance
Blackstone Credit & Insurance (“BXCI”) is one of the world’s leading credit investors. Our investments span the credit markets, including private investment grade, asset based lending, public investment grade and high yield, sustainable resources, infrastructure debt, collateralized loan obligations, direct lending and opportunistic credit. We seek to generate attractive risk-adjusted returns for institutional and individual investors by offering companies capital needed to strengthen and grow their businesses. BXCI is also a leading provider of investment management services for insurers, helping those companies better deliver for policyholders through our world-class capabilities in investment grade private credit.

About CPP Investments
Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Canada Pension Plan Fund in the best interests of the more than 22 million contributors and beneficiaries. In order to build diversified portfolios of assets, we make investments around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Mumbai, New York City, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At March 31, 2026, the Fund totalled $793.3 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Instagram or on X @CPPInvestments.

Advisors
CIBC Capital Markets acted as exclusive financial advisor to Element in connection with the transaction. Mayer Brown represented BXCI.

Contacts:

Element
Sumit Malhotra
SVP & Head of Financial Performance
(437) 343-7723
smalhotra@elementcorp.com

Blackstone
David Vitek
David.Vitek@blackstone.com
(212) 583-5291

CPP Investments
Frank Switzer
Managing Director, Public Affairs & Communications
fswitzer@cppib.com
(416) 523-8039

Forward-Looking Statements

This press release contains certain forward-looking statements and forward-looking information regarding Element, its business and the fleet industry, which are based upon Element’s current expectations, estimates, projections, assumptions and beliefs. In some cases, words such as “plan”, “expect”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “could”, “predict”, “project”, “model”, “forecast”, “will”, “potential”, “target, “by”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur are intended to identify forward-looking statements and forward-looking information. These statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in the forward-looking statements or information. Forward-looking statements and information in this news release may include, but are not limited to, statements with respect to, among other things, Element’s expectations regarding its future relationship with Blackstone and CPP, Element’s expectations regarding future financing transactions, and Element’s expectations regarding its growth and its ability to fund such growth. By their nature, these statements require us to make assumptions and are subject to inherent risks and uncertainties that may be general or specific, which give rise to the possibility that our predictions, forecasts, projections, expectations or conclusions will not prove to be accurate, that our assumptions may not be correct. External factors outside of Element’s reasonable control may impact our ability to achieve our goals and expectations, including industry dynamics, economic conditions, legislation and regulatory actions, the failure of third parties to comply with their obligations to us and our affiliates or associates, and client decisions and preferences. These and other factors may cause actual results to differ materially from the expectations expressed in the forward-looking statements and may require Element to adjust its initiatives and activities. The forward-looking statements in this news release speak only as of the date hereof and are presented for the purpose of assisting our stakeholders and others in understanding our objectives and strategic priorities and may not be appropriate for other purposes. We do not undertake to update any forward-looking statement except as required by law. In addition, a discussion of some of the material risks affecting Element and its business appears under the heading “Risk Management & Risk Factors” in Element’s Management Discussion and Analysis for the twelve-month period ended December 31, 2025 and under the heading “Risk Factors” in Element’s Annual Information Form for the year ended December 31, 2025, as well as Element’s other filings with the Canadian securities regulatory authorities, which have been filed on SEDAR+ and can be accessed on Element’s profile on www.sedarplus.ca.