Element Financial Corporation ("Element" or the "Company") announced that it has closed its previously announced Cumulative 5-Year Rate Reset Preferred Share Series C financing.

Element issued, on a bought deal basis, 5,000,000 6.50% Cumulative 5-Year Rate Reset Preferred Shares Series C at a price of $25.00 per Series C Preferred Share for gross proceeds of $125,000,000 (the "Offering") to a syndicate of underwriters co-led by GMP Securities L.P, National Bank Financial Inc., BMO Capital Markets, CIBC World Markets, RBC Capital Markets and TD Securities Inc. and including Desjardins Securities Inc., Raymond James Ltd. and Manulife Securities Inc. (collectively, the "Underwriters"). The net proceeds of the Offering will be used to originate and finance, directly or indirectly, finance assets as well as for general corporate purposes.

"Element's funding strategy is based on two fundamental principles - diversification by source, and duration alignment where we seek to match the term of the debt capital that we raise with the duration of the finance assets that we originate," noted Steven K. Hudson, Element's Chairman and CEO. "In addition to being non-dilutive to our common shareholders in 2014, the five-year rate reset feature of these securities, together with the deeper access to the preferred share market that they offer, make them very complementary to our current capital structure and fully consistent with our funding strategy," added Mr. Hudson.